Market regulator Securities and Exchange Board of India has released the final observation on the draft papers filed by CMS Info Systems ₹2,000 crore through Initial Public Offering (IPO). The observations were issued last week on October 29, 2021, the watchdog noted in a statement. This is the last step before the company goes for an IPO.
CMS Info Systems had filed the Draft Red Herring Prospectus (DRHP) on August 14, 2021. After receiving final comments, or colloquial approval, from SEBI, the Bering Private Equity-backed company will be allowed to file a red herring prospectus for the same. Initial public issue.
IPO consists entirely of an offer to sell ₹2,000 crore by Sion Investment Holdings Pte., an affiliate of Baring Private Equity Asia. Currently, Sion Investment Holdings holds 100 per cent stake in the firm.
CMS provides ATM and cash management, ATM installation, maintenance and card personalization services. Over the past decade, the company has previously been owned by Blackstone, which took a controlling stake in 2008. Later, it was taken over by Baring, who in 2015 almost bought the company. ₹2,000 crores.
Baring had attempted to make the CMS public once before. In 2017, it had filed draft papers with the market regulator, but allowed its 12-month approval period to expire without launching an IPO.
The firm conducts its business in three segments; cash management services including end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services; and inter-branch and currency vault cash-in-transit services for banks. On average, the CMS manages ₹5,000 crore cash in a day in India.
Managed Services, including banking automation product sales and service sales; end-to-end brown label ATM and managed services for banks; Common control systems and multi-vendor software solutions; As well as remote monitoring for ATMs and bank branches.
Others, including end-to-end financial card issuance and management and card personalization services for banks.
For FY21, its total income was ₹1,321.92 crore against ₹1,388.29 crore a year ago. Net profit for the period was ₹168.52 Cr Vs ₹134.71 crore last year. The firm served its customers through a pan-India fleet of more than 3,911 cash vans, 224 branches and offices and it served 133,458 business points.
Axis Capital, Dam Capital Advisors, Jefferies India and JM Financial are the book running lead managers of the issue.
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