Baring-owned CMS files for India IPO
CMS Info Systems, an Indian financial management service provider owned by Baring Private Equity Asia, has filed for an IPO that will see the PE firm make a partial exit.
The offer will consist solely of shares held by Baring's Singapore-based subsidiary Sion Investment Holdings, according to a prospectus, representing a 30% stake in the company. Currently, Sion is the sole shareholder with 148 million shares.
Pricing has not been announced. Since no new shares are being issued the offer will not result in any proceeds for the company. CMS expects the listing to result in enhanced brand recognition for the company and liquidity for Baring.
CMS provides services to a range of financial players in India at every stage of the cash cycle. The company works in three main areas: cash management, including ATM services, cash delivery and pickup and network cash management services; managed services, such as sale and installation of ATMs, along with maintenance; and others, including card and card personalization services.
According to a report by Frost & Sullivan, CMS was India's largest cash management company by number of ATMs and retail pickup points as of March 2017, and the fifth largest worldwide by number of ATMs as of December 2016. The company sees opportunity in India's growing economy resulting in expansion of cash in circulation. India's cash supply reached a peak of INR17.8 trillion last October before dropping to INR9.4 trillion due to the government's demonetization initiative, but by June it had once again reached INR15.1 trillion.
The company sees opportunity in India's growing economy resulting in expansion of cash in circulation. India's cash supply reached a peak of INR17.8 trillion last October before dropping to INR9.4 trillion due to the government's demonetization initiative, but by June it had once again reached INR15.1 trillion.
For the year ended March 2017, the company recorded total currency throughput of INR7.3 billion ($112 million). Revenue for the same period came to INR10.1 billion, down from INR 11.4 billion the year before. Net profit rose from INR549 million to INR787 million.
CMS was created in 2009 when The Blackstone Group carved the company out from CMS Group for $50.8 million. Baring bought Blackstone's 56% stake, along with a 39% stake held by individuals and 5% held by the employee ownership plan, in 2015.
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