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CMS Info Systems makes damp squib of a listing on New Year’s eve

CMS Info Systems makes damp squib of a listing on New Year’s eve
Stock Market1 min read
  • Shares of CMS Info Systems got listed at ₹218.50 while the price band was fixed at ₹205-216 per share.
  • The IPO did not receive much demand from investors in the three days of subscription process and was subscribed just 1.95 times.
  • The market capitalisation of the company stood at ₹3,233 crore.
Shares of Mumbai-based cash management company CMS Info Systems made a tepid listing on the National Stock Exchange (NSE) and BSE. The stock got listed at ₹218.50, 1.16% higher on the issue price band of ₹205-216 apiece.

Poor listing gains might not have been a complete shock for investors as the weak grey market premium and business nature of the company indicated not so good listing gains.

Post listing, the market capitalisation of the company stood at ₹3,233 crore, according to BSE data.

The shares of CMS Info Systems were trading at ₹238, higher by 10% at 10.35 a.m., on December 31.

The grey market premium of the company’s shares show a little premium of ₹5 from the higher end of the price band.

The initial public offering (IPO) was open for subscription from December 21 to December 23 and received poor response from investors. It was subscribed just 1.95 times on the last day of the bidding.

Moreover, the cash management company came up with an IPO when the government was pushing for digitisation. Adding to it, the company’s finances dipped slightly during lockdown as customers shifted some part of their transactions to digital payments.

So, the company may face a hurdle in its finances once again if another wave of COVID-19 comes through.

CMS Info Systems’ business includes installing, maintaining and managing assets and technology solutions on an end-to-end outsourced basis for banks under long term contracts.

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