CMS mulls ₹2,000-crore IPO, to foray into 3 new businesses

Rajiv Kaul   | Photo Credit: Special Arrangement

Cash management company CMS Info Systems Ltd., is planning to tap the capital market with an IPO to raise ₹2,000 crore for its promoter selling shareholder through an offer for sale.

The company has already filed its Draft Red Herring Prospectus (DRHP) with the Securities & Exchange Board of India (SEBI) will not directly receive any proceeds from the offer and all proceeds will be received by Sion Investment Holdings Pte. Ltd., an affiliate of Baring Private Equity Asia.

It operates in business segments such as cash management services, managed services, end-to-end financial cards issuance, management for banks and card personalisation services.

It is in the process of expanding to three new business areas, that include remote monitoring outside of the ATM and banking sectors, end-to-end currency management and financial services distribution, as per the offer document.

Rajiv Kaul, Executive Vice Chairman, Chief Executive Officer and Whole Time Director, CMS Info Systems Ltd., said, “The company has a track record of successfully incubating and building multiple new service lines, which has allowed it to offer its customers a broad range of services and products, as well as realise synergies within our business.

For instance, the company had entered the remote monitoring segment in 2021 and had an order book for 14,920 ATM sites as of July 31, 2021.

“The CMS Algo, our fully automated, mobility based, ATM security software application, is currently used in over 35,000 ATMs across India as of March 2021. These recent contract wins and the expansion of our managed services business has meant that our revenue from managed services has grown from 17.21% of our total revenue in FY19 to 27.88% of our total revenue in FY21,” he said.

The company has bagged high-value contracts worth ₹2,075 crore under the managed services segment and other business segments during FY21 and Q1 FY22, it said.

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Printable version | Dec 5, 2021 10:15:27 PM |

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