0

0

0

0

0

0

0

0

0

This article is more than 1 month old.

CMS Info Systems IPO opens; should you subscribe?

Mini

CMS Info Systems IPO: CMS Info Systems' IPO is entirely an offer for sale (OFS) worth Rs 1,100 crore by promoters and existing shareholders. CMS Info Systems shares are available for bidding in multiples of 69 under the IPO.

CMS Info Systems IPO opens; should you subscribe?
CMS Info Systems' IPO hit Dalal Street on Tuesday, December 21. The IPO of Mumbai-based cash management company CMS Info Systems is entirely an offer for sale (OFS) of equity worth Rs 1,100 crore by promoters and existing shareholders. The subscription window for the CMS Info Systems IPO will end on Thursday, December 23.
Under the CMS Info Systems IPO, shares are available for bidding in a price range of Rs 205-216. CMS Info shares are likely to list on stock exchanges BSE and NSE on December 31.
Ahead of the IPO, CMS Info Systems commanded a premium in the grey market. Dealers said the CMS Info Systems GMP or grey market premium stood at Rs 30 on Monday.

ALSO READ

Should you subscribe to the CMS Info Systems IPO? Here's what brokerages suggest:
Religare Broking
The brokerage has a positive view on CMS Info Systems from a long-term
perspective. "With less competition and high entry barriers in the sector, we believe leading players like CMS Info Systems would benefit from industry trends," according to Religare Broking.
"The company is well placed with a market share of 24.7 percent based on the total number of ATMs serviced, and 41.1 percent based on the total number of outsourced ATMs. They have a strong pan-India network and have long-standing relationships with leading banks. Besides, they offer integrated services to customers and provide them with a one-stop solution which is an added advantage," the brokerage said.
"Going forward, the company’s focus is on expanding its network in semi-urban and rural markets and growing the customer base by adding new customers. Also, it aims to continue to develop processes and systems which would support its business and operations to grow. The company has further plans to expand into three new business areas which include remote monitoring outside of the ATM and banking sectors, end-to-end currency management and financial services distribution. The company’s financials have been healthy," Religare Broking added.
Hem Securities
The brokerage recommends subscribing to the CMS Info Systems IPO.
The company is bringing the issue at a price-to-earnings multiple of 19 times on an FY21 EPS basis, according to Hem Securities.
"The company has a track record of strong productivity and operational excellence with an experienced and highly qualified management," it added.
Choice Broking
The brokerage recommends subscribing to the CMS Info Systems IPO.
At the upper end of the price band, CMS is demanding a  price-to-earnings multiple of 19 times its FY21 earnings, which is in line with the multiple of its sole listed peer, Choice Broking said.
"Considering the continued vital role of the cash in the domestic economy and its diversified product portfolio across the cash management value chain coupled with its dominant market position in the sector, we assign a 'subscribe' rating for the issue," the brokerage added.
next story