CMS Info Systems Limited IPO

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(i) India is the third largest ATM market in the world based on the number of installed ATMs, and CMS Info is India’s largest cash management company based on number of ATM points.

(ii) The Company’s business includes installing, maintaining and managing assets and technology solutions on end-to-end outsourced basis for banks under long term contracts. They cater to broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India.

We operate our business in three segments:

a. Cash management services, which include end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services (together known as “retail cash management services”); and cash-in-transit services for banks.

b. Managed services, which include banking automation product sales, deployment, and associated annual maintenance; end-to-end Brown Label deployment and managed services for banks; common control systems and software solutions, including multi-vendor software solutions and other security and automation software solutions.

c. Others, which include end-to-end financial cards issuance and management for banks and card personalisation services.

Competitive Strengths
Leading player in a consolidating market with strong fundamentals
Pan-India footprint with deep penetration in growing markets
Longstanding customer relationships leading to increased business opportunities

Objects of the CMS Info Systems Limited IPO:

The objects of the Offer are to : Carry out the Offer for Sale of up to Equity Shares by the Promoter Selling Shareholder aggregating up to ₹11,00 Crores. No funds will go the company. It is a pure-OFS.

CMS Info Systems Limited IPO Details:

Open Date: Dec 21 2021
Close Date: Dec 23 2021
Total Shares: 50,295,925
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 1,100 Cr.
Lot Size: 69 Shares
Issue Price: ₹ 205 - 216 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 31 2021

Promoters And Management:

i. Shyamala Gopinath, is the Chairperson of the Company and an Independent Director of the Company. She has been associated with the Company since November 13, 2017. She holds a master’s degree in commerce from the University of Mysore. She is a certified associate member of the Indian Institute of Bankers and an honorary fellow of the Indian Institute of Banking and Finance. In the past, she has served as the Deputy Governor of the RBI, chairperson of the advisory board on Bank, Commercial and Financial Frauds and part-time non-executive director of HDFC Bank Limited. Currently, she is a director on the board of several companies including Colgate Palmolive (India) Limited, CRISIL Limited, CRISIL Ratings Limited and Grassroot Trading Network for Women. She is associated with Indian Institute of Management, Raipur as the chairperson of the board of governors, Research and Information System for Developing Countries as a member and Sanitation and Advisory Council of India Sanitation Coalition as a member of finance. ii. Rajiv Kaul, is the Executive Vice Chairman, Whole Time Director and CEO of the Company. He has been associated with the Company since July 1, 2009. He is currently heading the Company and is responsible for the overall management of the Company. He holds a bachelor’s degree in engineering specialising in computer science from Birla Institute of Technology, Mesra and a post-graduate diploma in business management specialising in marketing and finance, from XLRI - Xavier School of Management, Jamshedpur. He has over 24 years of experience across technology, private equity and cash management industry. Prior to his association with the Company, he was associated with Actis Capital LLP, London as a partner and with Microsoft Corporation (India) Private Limited in the capacity of general manager and managing director, India from where he moved to Redmond, USA as senior director of emerging markets including BRIC. iii. Jimmy Lachmandas Mahtani, is a Non-Executive Director of the Company. He has been associated with the Company since August 27, 2015. He holds a bachelor’s degree in science in business administration, triple major in finance, marketing and international business from Georgetown University. He has over 21 years of experience in private equity and investment banking. He has been associated with Baring Private Equity Asia (BPEA) since 2006 and currently serves as a managing director of private equity investment team in India. Prior to BPEA, he was associated with General Atlantic Partners (Mumbai) in the capacity of a vice president.

Financials of CMS Info Systems Limited IPO:

Particulars (in Cr) March-21 March-20 Mar 19
Revenue 1306 1383 1146
Purchase of traded goods 206 181 100
Change in inventories -27 9 -113
Employee benefits expense 201 219 213
Other Expense 631 718 645
Operating profit 295 256 301
OPM % 23% 19% 26%
Finance Cost 8 7 7
Depreciation 63 56 53
Other Income 9 2 11
Profit Before tax 237 195 149
Profit After Tax 168 133 96
EPS 11.39 9.1 6.50

Comparison With Peers:

As per RHP, CMS has shown SIS Ltd. as its listed peer. It is currently trading at a P/E of 60x.

Recommendation on CMS Info Systems Limited IPO:

Review and Recommendation of CMS Infosystem by InvestorZone is 3/10 1. Company deals with management of ATMs around the country and cash-management service.  2. Revenue has grown from 1146 Crores to 1300 Crores in the last 3 years.  3. PAT has grown from 96 Crores to 168 Crores in the last 3 years. 4. EPS (FY21) = 11, P/E = 20x 5. Total Outstanding Shares = 14.8 Crores, Mcap = 3100 Crores 6. ATM and Cash business is slowly getting reduced in the economy with the advent of UPI in the last 3 years. So, that is one negative point for the company.

Registrar of CMS Info Systems Limited IPO:

  1. Link Intime India Private Limited

Company Address:

CMS Info Systems Limited T-151, 5th Floor, Sector-11, Tower No. 10 Railway Station Complex, CBD Belapur, Navi Mumbai, Thane – 400614 Phone: +91 22 4889 7400 Email: Website

Discussion on CMS Info Systems Limited IPO:

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