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CMS Info Systems: All you need to know

If you have withdrawn cash recently from an ATM, then chances are, you have used the services of CMS Info Systems. The company is India’s largest cash management company in terms of the number of ATMs and retail pick-up points. It provides a range of services to financial institutions, organised retail and e-commerce companies. From cash pick up and delivery to feeding it into ATMs - the company caters to a broad set of outsourcing solutions. And now, CMS Info Systems is all set to launch its IPO.

Offer details

Timeline

All about the IPO

Founded in 2008, CMS Info Systems has an interesting history. In 2015, Hong Kong-based Baring Private Equity acquired CMS Info Systems by buying out stakes from Blackstone, the then owners CMS and the management team. This reportedly turned out to be US-based Blackstone then-highest return on an investment since opening its India office in 2005.

Rajiv Kaul, who was a part of the management, decided to reinvest his money into the business and stay on. Since then, under Kaul’s leadership, the company has continued to scale new heights. CMS Info Systems has 3,911 cash vans and its network covers 96% of India’s districts. In FY21, the total value of currency passing through all its ATMs and retail cash management businesses amounted to a staggering ₹9.1 lakh crore.

The company categorizes its business into three segments - cash management services (69% of the revenue), managed services (28% of the revenue) and others (3% of the revenue).

Financials

Revenue: 8%; Net Profit: 32% (FY19-21 CAGR)

Strengths

Risks

Good to know

Despite the spurt in digital transactions in India post demonetisation, around 90% of the payments are still made in cash. Also, the number of ATMs in India are expected to grow at a CAGR of 6.2% to 3.6 lakh by FY27. Being one of the leading cash management companies in India, CMS Info Systems is well-positioned to benefit from the growth in the coming years.

Categories: IPO