Mumbai, NFAPost: CMS Info Systems, the cash management company, has submitted preliminary papers with markets regulator Sebi to fetch Rs 2,000 crore through its initial share sale offering.
The company’s initial public offer (IPO) is a pure offer for sale by promoter Sion Investment Holdings Pte, an affiliate of Baring Private Equity Asia, as per the draft red herring prospectus (DRHP). Sion Investment acquired CMS in 2015 and holds 100% in the company at present.
CMS offers cash management services like 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.
The company’s business includes installing, maintaining and managing assets and technology solutions on end-to-end outsourced basis for banks under long term contracts.
Cash management services, which include end-to-end ATM replenishment services; cash pick-up and delivery; network cash management and verification services (together known as “retail cash management services”); and cash-in-transit services for banks.
Managed services, which include 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, including multi-vendor software solutions and other security and automation software solutions; as well as remote monitoring for ATMs
Others, which include end-to-end financial cards issuance and management for banks and card personalisation services.
The Initial Public Offer (IPO) consists Offer for Sale (OFS) of Equity Shares by the Promoter Selling Shareholder of face value of Rs 10 each, aggregating up to Rs 2,000 crore. The company will not directly receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Promoter Selling Shareholder, ie. Sion Investment Holdings Pte. Limited (“Promoter Selling Shareholder”).
The Book Running Lead Managers to the offer are Axis Capital Limited, DAM Capital Advisors Limited, Jefferies India Private Limited and JM Financial Limited.
It is the second attempt of CMS to go public, in 2017 the company 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 appointed as the book running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.