Cash management services provider CMS Info Systems Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for Rs 2,000-crore initial public offering.
The initial public offering (IPO) is only an offer for sale by promoter Sion Investment Holdings Pte. Limited, an affiliate of Baring Private Equity Asia, and no fresh equity shares will be issued.
Sion acquired CMS Info Systems in August 2015, and holds 100 per cent stake in the company.
As the IPO is an offer for sale by the promoter, the company will not receive any proceeds from the IPO. 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.
CMS Info Systems caters to a broad set of outsourcing requirements for banks, financial institutions, organised retail and e-commerce companies in India.
It offers cash management services, including end-to-end ATM replenishment services, cash pick-up and delivery, network cash management and verification services and cash-in-transit services for banks. Besides, the company’s managed services segment provides banking automation product sales, deployment and associated annual maintenance, end-to-end brown label deployment and managed services for banks, common control systems and software solutions, among others.
The company also offers end-to-end financial cards issuance and management for banks and card personalization services. Its total income stood at Rs 1,321.9 crore during FY21, while profit was at Rs 168.5 crore.
Axis Capital, DAM Capital Advisors, Jefferies India and JM Financial are the book running lead managers for the IPO, while Link Intime India is the registrar to the offer.
The equity shares of the company will be listed on BSE and NSE.