CMS Info Systems recorded a lukewarm listing on the bourses on Friday, the last day of Calendar 2021, listing at over 1 per cent premium over its issue price of ₹216.
The shares listed at ₹218.50 on the BSE, up ₹2.50 or 1.16 per cent over the IPO price.
On the NSE, it listed at ₹220.20, up ₹4.20 or 1.9 per cent from its issue price.
The company had fixed the IPO price at ₹216, at the upper end of the price band ₹205-216.
The company’s ₹1,100-crore IPO had received a muted response from investors and was subscribed 1.95 times. While the quota reserved for retail investors was subscribed 2.15 times, the portions for qualified institutional buyers and non-institutional investors booked 1.98 times and 1.45 times, respectively.
The IPO was a complete offer for sale by promoter Sion Investment Holdings, an affiliate of Baring Private Equity Asia.
Anchor investors
Ahead of the issue, CMS Info had raised ₹330 crore from anchor investors that included ICICI Prudential, Nomura India, SBI Mutual Fund, WF Asian Reconnaissance Fund, Aditya Birla Sun Life, Goldmans Sachs, SBI Life Insurance, Abakkus Emerging Opportunities Fund, Theleme India Master Fund and BNP Paribas Arbitrage.
CMS provides cash management services, including ATM services, cash delivery and pick-up.
Aayush Agrawal, Senior Analyst, Swastika Investmart said, “Despite consistent growth in revenues, stable financial performance, and increasing margins, we saw a decline in FY21 which can be attributed to Covid-19.”
“Also as the government focuses on digital payments, a further decrease in the use and availability of cash can have an adverse effect on business activities. The risk of market volatility also needs to be considered right now on the back of rising cases from the Omicron variant,” said Agrawal.
“The entire IPO proceeds of ₹1,100 crore being offered for sale is another reason for the slow response from the market,” he said.
According to Agrawal, market volatility for the past few months and last few tepid listings might have added to the slow response for the issue.
