CMS Info Systems, backed by Baring Private Equity Asia, has filed papers with markets regulator SEBI to launch an initial public offering (IPO). The company plans to raise Rs 2,000 crore through the public issue that comprises entirely an offer for sale (OFS).
The OFS will be carried out by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Equity Asia after it acquired the company in 2015.
Axis Capital, Jeffries India, Dam Capital Advisors, and JM Financial are the lead book-running managers to the issue.
CMS Info Systems operates in three business segments: cash management services, cash pick-up and delivery, network cash management and verification services, and inter-branch and currency chest cash-in-transit services or banks. It manages Rs 5,000 crores of cash in a day, on average, across the country.
The company caters to a broad set of requirements for banks, organised retail and e-commerce companies, and financial institutions in the country. Its services also include end-to-end financial cards issuance and management for banks and card personalisation services.
The company is led by Rajiv Kaul, the Executive Vice-Chair, Chief Executive Officer, and a Whole Time Director of the company since 2009. He is a former General Manager and Managing Director of Microsoft India and a former partner at Actis Capital LLP, London.
As of FY21, its total income stood at Rs 1,321.92 crore, lower than Rs 1,388.29 crore reported a year ago. Its net profit, however, widened to Rs 168.52 crore against Rs 134.71 crore YoY. It has customers in India with over 3,911 cash vans, 224 offices and branches, and over 133,458 business points.