CMS Info Systems shares rise up to 5% as leading MFs buy promoter stake

Shares of cash management solutions provider CMS Info Systems surged up to 5% on Wednesday, a day after mutual funds bought promoter firm Sion Investment Holdings’ entire stake in the company in deals worth around ₹1,549 crore.

The stock opened higher and gained further around 5% to hit a high of ₹404 per share on NSE in morning deals. Over 35 lakh shares changed hands on NSE while the traded value was around ₹141 crore.

The stock later pared some gains to trade 0.53% higher at ₹387.80 at 11.14 am. According to the stock exchange data, promoter firm Sion Investments, an affiliate of Baring Private Equity Asia, sold its entire stake of 26.6%, or 4,17,71,975 equity shares, in bulk deals on Tuesday, February 27.

The shares were sold at a price of ₹370.78 per share, taking the total deal value to around ₹1,549 crore.

The market data showed that a clutch of foreign and domestic institutional players were among the major buyers of the shares.

Buyers of shares included Morgan Stanley Asia Singapore PTE, Nomura Funds Ireland Public, Societe Generale, AIG Global Investment Corporation, ICICI Prudential Mutual Fund, Think India Opportunities Master Fund LP, IIFL Securities, Kotak Small Cap fund, WF Asian Reconnaissance Fund Abu Dhabi Investment Authority-WAY, India Equity Fund, India Acorn ICAV, and Mathew Cyriac of Florintree Advisors.

Among these, ICICI Prudential MF bought a 3.58% stake at a price of ₹370.05 per share for a total of ₹208 crore.

Nomura was another major buyer, which acquired around ₹160 crore shares, while Kotak acquired shares worth ₹134 crore.

CMS Info Systems is a leading provider of cash management and ATM services and installs and maintains automated teller machines (ATM) and cash deposit machines.