CMS Info Systems, in which promoter investor Sion Investment sold its entire remaining equity stake this week, said that CEO Rajiv Kaul has increased his stake to 6.2 percent from 2.6 percent. Kaul raised this stake exercising his employee stock options (ESOPs).
In a release, Kaul said that increasing his stake demonstrated his and the company's commitment and focus to expand their offerings as well as to continue on their track record of high growth and strong profits." Kaul has been with CMS Info Systems for over 16 years, since he invested in the company along with Blackstone Private in 2009. Prior to CMS Info Systems, Kaul was MD, Microsoft India.
Also read: CMS Info Systems Q3 results: Consolidated PAT rises 15% YoY to Rs 87 crore
Promoter recently exited the company:
On February 27, Sion Investments sold its entire stake in the company through open market transactions. They sold 4,17,71,975 shares, or around 26.68 percent stake in the company at an average price of Rs 370.38. The value of the deal was Rs 1,547.15 crore.
Sion Investment, an affiliate of Hong Kong-based Baring Private Equity Asia had initially acquired CMS Info Systems in August 2015 from Blackstone Private Equity and other shareholders. The company was listed on December 2021. Since listing, the stock has gained around 61 percent and earnings have grown over 34 percent.
Over the years, the promoter has offloaded stake. In March 2023, the company had around 60 percent stake in CMS Info. In June 2023, they sold 13.8 percent stake for Rs 638 crore at an average price of Rs 300.23 a share, followed by 19.4 percent stake for Rs 1,071 crore in October 2023.
CMS Info Systems is a business services company that provides logistics and technology solutions to banks, financial institutions, organized retail, and e-commerce companies in India with a presence across Cash Logistics, ATM Managed Services and Technology Solutions. The company currently has a market cap of around Rs 6,019 crore.
In Q3FY24, CMS Info Systems reported a revenue of Rs 582 crore, rising by 19 percent YoY, compared to Rs 488.3 crore recorded in the same quarter a year ago. Net Profit also grew 14.91 percent to Rs 87 crore for the October-December quarter of FY24, against Rs 75.8 crore in the previous fiscal. In the last 15 years, CMS Info Systems revenue has grown around 17 percent CAGR and earnings have grown around 20 percent. Valuation for the same period compounded at an external internal rate of return (XIRR) of over 25 percent.
At close on February 29, CMS Info Systems' shares were trading at Rs 385.15, around 1 percent higher. The news came post-market hours.
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