CMS Info Systems Listing today: Analysts expect tepid or weak market debut - What investors need to know

The shares of CMS Info Systems are likely to witness either tepid or weak listing on Friday, December 31, 2021, majority of the analysts, including Zee Business Managing Editor Anil Singhvi predicted.

Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd expect to India’s largest cash management company CMS Info Systems’ shares to list flat or at a discount of 10 per cent. The market volatility for the past few months and tepid last few listings might add to this slow response, he added. 

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CMS Info Systems also failed to perform in the grey market as it is trading at only 2.5 per cent over its issue price at upper end of Rs 216 per share, the analyst said in listing preview of CMS Info Systems. 

CMS Info Systems IPO (initial public offer) subscribed 1.95 times on the final day on December 23, 2021. It received bids for 7,32,71,721 shares as against the reserved quota of 3,75,60,975 offered.    

The retail investors led the subscription as the Retail Individual Investors (RIIs) portion booked 2.15 times. The QIBs and the NIIs quotas were filled 1.98 and 1.45 times, respectively, during three-day. 

The senior analyst at Swastika Investmart also noted that 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 analyst also said in a note. 

Suggesting investors to avoid this stock, Agrawal mentioned that the risk of market volatility also needs to be considered right now on the back of rising cases from the omicron variant. 

Zee Business Managing Editor Anil Singhvi terming it as an investment stock, said, “You may not get massive listing gain on this IPO, but this is a stock that one can keep in their portfolio.”