CMS Info Systems' IPO saw an overall subscription of two times on December 23, the third and final day of the bidding process.
CMS Info Systems' initial public offering (IPO) was subscribed nearly two times on December 23, the third and final day of the bidding process. At the end of the day, the issue received bids for 7.3 crore shares as against the 3.8 crore shares on offer.
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The portions reserved for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) saw subscriptions of two times and 1.5 times respectively. The retail investor category was booked 2.2 times.
The entire IPO of the Mumbai-based cash management company was an offer for sale (OFS) of equity worth Rs 1,100 crore by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia. Sion Investment, which acquired CMS in 2015, holds a 100 percent stake in the company at present.
Under the CMS Info Systems IPO, shares were available for bidding in a price band of Rs 205-216. Investors could place bids in multiples of 69.
At the upper end of the price range, one lot is valued at Rs 14,904.
On Monday, the cash management company announced that it has garnered Rs 330 crore from anchor investors ahead of IPO. It allotted 1.53 crore equity shares to 12 anchor investors at Rs 216, aggregating to Rs 330 crore, according to a circular uploaded on the BSE website.
BNP Paribas Arbitrage, Goldman Sachs, Nomura, SBI Life Insurance Co Ltd, ICICI Prudential Mutual Fund (MF), Aditya Birla Sun Life MF, and SBI MF are among the anchor investors.
Several brokerages suggested subscribing to the issue as they are positive about it for the long term. Religare Broking believes due to less competition and high entry barriers in the sector, the likes of CMS Info Systems are likely to benefit from industry trends.
Choice Broking also assigned a 'subscribe' rating to the issue on the back of the vital role of cash in the domestic economy and the company’s diversified product portfolio across the cash management value chain coupled with its dominant market position in the sector.
First Published: IST