India’s largest cash management company, CMS Info Systems, is all set to launch its IPO on December 21, 2021. Through the CMS Info Systems IPO, the company will be going to raise INR 1,100 crore from the market.
If you are going to apply for the IPO, it is crucial for you to know all the plus & Minuses before launch. The company is India’s largest cash management company in terms of the number of ATM points and retail pick-up points as of March 31, 2021.
The company performs various activities for many banks, financial institutions, organized retail and e-commerce companies in India ranging from installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis.
Some must to know Key Information:
- Issue Open Date: 20th December, 2021
- Issue Close Date: 21st December, 2021
- Issue Size: Rs 1,100 Crore
- Face Value: Rs 10 apiece
- Price Band Per Share: Rs 205 to Rs 216
- Lot Size: 69 Shares
- Minimum Investment: Rs 14,145
- IPO Doc (RHP PDF): Click Here to Download RHP
About the Company
Mumbai-based CMS Info Systems was founded in 2008. As of 31st March 2021, if we count the number of ATM points and the number of retail pick-up points, CMS Info Systems Ltd. is India’s largest cash management company.
The company’s business can be divided into three segments: Cash Management Services, Managed services like Software solutions, selling banking automation products, and services related to financial cards.
The company has built a strong network and covers all of India’s states and union territories. As of 31st August 2021, the company had 3,965 cash vans and 238 branches and offices spread across the country.
Financial Stats
Important financial stats of the company are mentioned as below
Competition Stats
CMS Info Systems has tough competition with two of its competitors, SIS Ltd. & AGS Transact Technologies Ltd. According to Bloomberg Quint, they both had more income than CMS Info Systems Ltd. amounting Rs 9,605 Crore and Rs 1797.15 Crore. PE for SIS Ltd. holds the value of 18. RONW percentage of CMS, AGS & SIS was 17.12, 10.29, 20.0.
Positives
- CMS Info Systems is a leading company with strong fundamentals.
- It has strong systems and processes to manage and scale an operationally complex business.
- Previous track records of the company shows its operational excellence.
- Company is an Integrated Business platform which offers a wide range of products & services.
- It has long relationships with customers. Thus, increases business opportunities.
- Pan-India footprint with deep penetration in growing market.
Risks which needs to be considered
- CMS Info Systems depends highly on banking sector.
- Business is subject to the risk of criminal attacks of various types by third parties, including armed robbery, theft and fraud.
- The Business has significant expenses related to employee benefits and transportation costs.
- Limited number of customers for a portion of revenue.
- With increase in online digital payments and less usage of cash, company might suffer.
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