CMS Info Systems Ltd. (CMS) has fixed a price band of ₹205 to ₹216 per equity share of ₹10 for its ₹1,100-crore IPO which will open on December 21.
CMS’s promoter Sion Investment Holdings Pte. Ltd (an affiliate of Baring Private Equity Asia) will be diluting up to 35% of its 100% stake in the company.
The company operates in cash management and managed services for ATMs including end-to-end financial cards issuance and management for banks and card personalisation services.
Rajiv Kaul, vice-chairman and CEO, CMS Info Systems, said that the total addressable market (TAM) for their line of business is expected to grow to about ₹25,000 crore till 2027 registering a 17% CAGR year on year.
“CMS has a market leadership position as a tech-powered B2B outsourcing platform for the BFSI, retail and e-commerce sector in India. The company has a strong growth momentum with an order book of ₹2,000 crore won in the last 15 months. And we have a strong track record in corporate governance,” Mr. Kaul said.
He said cash in circulation has been steadily increasing and India continues to be a cash intensive economy. The cash in circulation has grown by 19.8% between March 2020 and March 2021 to ₹28.4 trillion. It is expected to continue to grow at approximately 10% to reach ₹41.5 trillion by FY25, he said.
Mr. Kaul said even though digital transactions are growing fast on a smaller base, 17,000 ATMs have been added in the last two years by major banks.
“The SURU (Semi Urban and Rural India) area opportunity is a good opportunity for CMS even as regulatory push will spur ATM penetration and efficiency in cash management and managed services,” he said.
“We see new growth opportunities in financial services distribution including micro-ATM network, on-demand pickups, corporate business correspondent services, merchant payments, and bill payments.”