CMS Infosystems IPO Listing: Sharers likely to list flat, says Anil Singhvi

Shares of CMS Infosystems IPO (initial public offer) are all set be listed on exchanges today, December 31, 2021.  Ahead of the listing of the shares, Zee Business Managing Editor Anil Singhvi on Friday said the shares are expected to be listed flat near the issue price. "Expected to list near issue price of Rs 216. Long Term Investors can hold as an investment stock," said Anil Singhvi 

Earlier, Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd had said the shares are likely to listed flat or at 10 pe recent discount on its issue price.  

"CMS Info Systems also failed to perform in the grey market as it is trading at only 2.5% over its issue price. The market volatility for the past few months and tepid last few listings might have added to this slow response.  We expect the shares to list flat or at a discount of 10%," he said.  

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Further talking about the company, the analyst said 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, he said.  

"The risk of market volatility also needs to be considered right now on the back of rising cases from the omicron variant.  We suggest investors to Avoid this stock," recommended Aayush Agrawal.  

The issue received a muted response from the market getting a subscription of only 1.95 times. The entire IPO proceeds of Rs 1,100 crores being Offered for Sale is another reason for the slow response from the market. 

CMS Infosystems IPO was subscribed 1.95 times on the final day. The issue had received bids for 7,32,71,721 shares as against the reserved quota of 3,75,60,975 on the third day of the issue.     

The provider of cash management services, including ATM services and cash delivery and pick-up, has fixed a price band of Rs 205-216 per share for this IPO.   

The company size is worth Rs 1,100-crore. CMS Info Systems has cut its IPO size to Rs 1,100 crore from Rs 2,000 crore earlier. The public issue is purely an offer for sale by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.