IPO of CMS Info Systems opens today; shares priced at Rs 205-216 a piece
Of the CMS Info Systems net issue, 15 percent has been reserved for non-institutional investors, 35 percent has been set out for retail investors and the remaining half of the issue has been set aside for qualified institutional buyers
The Initial Public Offering (IPO) of CMS Info Systems Limited, the largest ATM cash management company in India, opens today, 21 December. The Rs 1,100 crore issue will close its three-day subscription period on 23 December.
The company has already raised Rs 330 crore from anchor investors ahead of the issue, with 1,52,77,777 equity shares being allotted to 12 anchor investors at Rs 216 per share.
Among the anchor investors of the ATM cash management company are Nomura India, SBI Mutual Fund, BNP Paribas Arbitrage, Aditya Birla Sun Life, Goldmans Sachs, Abakkus Emerging Opportunities Fund, Theleme India Master Fund, ICICI Prudential, WF Asian Reconnaissance Fund, and SBI Life Insurance.
The shares of the CMS Info Systems, which have a face value of Rs 10 per share, will be priced at Rs 205 to 216 apiece. Investors need to bid for a minimum of 69 shares and, multiples of 69 afterwards. Buyers need to invest a minimum of Rs 14,904 for a single lot of CMS Info Systems shares, while the maximum investment allowed for an investor is Rs 1,93,752 for 13 lots.
The share allotment will be decided on 28 December, according to MoneyControl, while the company is expected to be listed on the exchanges on 31 December.
The IPO of CMS Info Systems is exclusively an offer for sale (OFS) by Sion Investment Holdings Pte, an affiliate of Baring Private Equity Asia, which holds 100 percent of the shares. After the public issue, the promoter shareholding will fall to 65.59 percent. The company will use the public issue to achieve the benefits of listing on the stock exchanges, as well as carry out an OFS of equity shares by promoters.
Of the CMS Info Systems net issue, 15 percent has been reserved for non-institutional investors, while 35 percent has been set out for retail investors. The remaining half of the issue has been set aside for qualified institutional buyers (QIBs).
The issue managers are Axis Capital, JM Financial, DAM Capital Advisors and Jefferies India, while Link Intime is the registrar of the IPO.
CMS Info Systems Ltd is seen as one of the largest cash management companies globally, based on the number of ATM points and retails pick up points till March this year. It focuses on installation, maintenance, and management of assets and technology solutions for financial institutions, banks, e-commerce and organised retail companies in the country. The company operates in cash management, managed services such as banking automation products and other services such as card personalisation services. The company had 238 branches and offices and 3,965 cash vans across the country as on 31 August this year.
The company whose IPO, which is already being subscribed, has raised the price range on its initial public offering to $34 to $38 due to strong demand
While IRCON has already approached Sebi with its IPO papers, IRFC would soon file the draft prospectus with the market regulator to seek its nod for initial share sale and subsequent listing
Facebook Inc's record initial public offering is already oversubscribed, a source familiar with the share listing said.