CMS INFO SYSTEMS IPO

IPO Details:

Price Band: 205-216

Cutoff Price: 216

About Company:

India is the third largest ATM market in the world based on the number of installed ATMs, and CMS is India’s largest cash management company based on the number of ATM points and number of retail pickup points as well as one of the largest ATM cash management companies worldwide based on the number of ATM points. For Fiscal Year 2021, company total currency throughput, or the total value of the currency passing through all the ATM and retail cash management businesses, amounted to `9,158.86 billion. CMS business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long-term contracts.

Competitive Strengths:

1. Leading player in a consolidating market with strong fundamentals.

2. Pan-India footprint with deep penetration in growing markets.

3. Longstanding customer relationships leading to increased business opportunities.

4. Integrated business platform offering a broad range of services and products.

5. Systems and processes to manage and scale an operationally complex business.

6. Track record of strong productivity and operational excellence.

7. Experienced and highly qualified management team that have successfully grown our business.

Strategies:

1. Leverage our scale and integrated offerings to grow our business.

2. Grow through selective value accretive strategic acquisitions.

3. Capitalize on the growing cash cycle to expand our operations.

4. Drive operational efficiencies and increase profitability.

5. Expand into business areas that create synergies with our current business.

6. Enhancing our organizational capabilities.

Financial Performance:

Revenue of the company is increasing. Company is profitable and cutoff price is at P/E of 19.

Objects of the Issue:

The Net Proceeds from the Issue are proposed to be utilised in the following manner:

1. Offer for Sale

Competitors Comparison:

There are no listed competitors of CMS Info Systems. If we consider Net worth then company cutoff price is at P/B of 3.2.

Grey Market Premium:

Our view: GMP of the IPO not that good although company is fundamentally good. I will not subscribe to this IPO.

Disclaimer: Views are shared for an educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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