Cash management company CMS Info Systems on Monday said it has garnered Rs 330 crore from anchor investors ahead of its initial public offering (IPO) on Tuesday.
The company has allotted 1.53 crore equity shares to 12 anchor investors at Rs 216 apiece, 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.
The company's Rs 1,100-crore public issue is a pure offer for sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.
Sion Investment, which acquired CMS in 2015, holds 100 per cent stake in the company at present.
The issue, with a price band of Rs 205-216 a share, will be open for public subscription during December 21-23.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors.
Investors can bid for a minimum of 69 equity shares and in multiples thereof.
CMS provides cash management services, which include ATM services, and cash delivery and pick-up.
Axis Capital, DAM Capital Advisors, Jefferies India, and JM Financial are the book running lead managers to the issue.
Check what analysts/brokerage houses are saying, a report published in Moneycontrol said.
Considering the continued vital role of the 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, the brokerage house has assigned a ‘subscribe’ rating for the issue.
Marwadi Financial Services
Considering the FY-21 adjusted EPS of Rs 11.1 on post-issue basis, the company is going to list at a P/E of 19.5 with a market cap of Rs 3,197 crore, while its peer like SIS Limited, is trading at a P/E of 19.7.
The brokerage house has advised investors to ‘subscribe’ to the issue as it is available at a reasonable valuation compared to its peer and the company is India’s largest in its space with a pan-India footprint and deep penetration in growing markets.
The brokerage house has advised the investors to ‘subscribe’ to the issue for listing gains. It said we are comfortable on the valuation front and about the medium-term outlook on the business as an increase in velocity of physical currency in circulation is a piece of sweet music for the company.
Meanwhile, according to CNBC TV 18 report, the dealers said CMS Info Systems' grey market premium (GMP) was steady at Rs 30 on Monday.
"However, the business of the company is into ATM and cash management, and cash is slowly reducing in the economy with UPI transactions in the limelight. The peer SIS has underperformed since listing. The sector does not appear to have great prospects plus market conditions are also poor," he said.