The public issue of CMS Info Systems has received bids for 2.47 crore equity shares from investors against the offer size of 3.75 crore equity shares, a total subscription of 66 percent on the second day of bidding.
The company provides installing, maintaining and managing assets and technology solutions on end-to-end outsourced basis for banks under long term contracts.
It claims to be India's largest cash management company based on the number of ATM points and retail pick-up points as of March.
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Retail investors have put in bids 1.3 times their reserved portion, while non-institutional investors bought 4 percent shares of the allotted quota. Qualified institutional buyers have not started buying shares of the company.
CMS Info Systems targets to mop up Rs 1,100 crore through its public issue, at the upper price band of Rs 216 per share. It is purely an offer-for-sale by promoter Sion Investment Holdings Pte Limited.
"The company being a leading player in a consolidating market with strong fundamentals has an integrated business platform offering a broad range of services and products. Also, the company has a track record of strong productivity and operational excellence with experienced and highly qualified management. Hence, we recommend “subscribe” on the issue," said Hem Securities.
India is the third largest ATM market in the world based on the number of installed ATMs, after China and the United States, and is expected to grow at a CAGR of 6.16 percent from 2.55 lakh as of March 2021 to 3.65 lakh as of March 2027.
As of March, the company had a market share of 24.7 percent, based on the total number of ATMs in India, as well as a market share of 41.1 percent, based on the total number of outsourced ATMs in India.