Cash management company CMS Info Systems is set to launch its initial public offer (IPO) on Tuesday. It is a company promoted by private equity firm Barings Private Asia.
CMS Info Systems is the country’s largest cash management service provider to ATMs. Through the IPO, the company is seeking a market value of ₹3,196.80 crore. The IPO will close on December 23.
The company’s ₹1,100-crore public issue is a pure offer for sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.
Sion Investment, which acquired CMS in 2015, holds 100 per cent stake in the company at present.
The issue will have a price band of ₹205-216 a share.
Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors.
Investors can bid for a minimum of 69 equity shares and in multiples thereof.
Ahead of the IPO, CMS Info Systems said on Monday that it has garnered ₹330 crore from anchor investors. The company has allotted 1.53 crore equity shares to 12 anchor investors at ₹216 apiece, aggregating to ₹330 crore, according to a circular uploaded on BSE website.
BNP Paribas Arbitrage, Goldman Sachs, Nomura, SBI Life Insurance Co Ltd, ICICI Prudential Mutual Fund (MF), Aditya Birla Sun Life MF and SBI MF are among the anchor investors.
CMS Info Systems caters to broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India. It operates business in three segments – cash management services, managed services and others.
This is the company’s second attempt to go public. It had obtained clearance from market regulator Sebi to launch an IPO in 2017, but couldn’t do so at that time.
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