Cash management company CMS Info Systems on Monday said it has garnered Rs 330 crore from anchor investors ahead of its initial public offering (IPO) on Tuesday. The company has allotted 1.53 crore equity shares to 12 anchor investors at Rs 216 apiece, aggregating to Rs 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. The company’s Rs 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, with a price band of Rs 205-216 a share, will be open for public subscription during December 21-23. 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.
CMS provides cash management services, which include ATM services, and cash delivery and pick-up. The company’s integrated business platform is supported by customised technology and process controls, which enables it to offer customers a wide range of tailored cash management and managed services solutions. It 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 will be the company’s second attempt to go public. Earlier in 2017, it had filed draft papers with Sebi and had obtained the regulator’s clearance to launch the IPO. However, the company did not launch the public issue. Axis Capital, DAM Capital Advisors, Jefferies India, and JM Financial are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.
Other cash management and allied technology companies that have filed for IPO are — AGS Transact Technologies, India1 Payments and Radiant Cash Management Services.