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CMS Info Systems Ltd

About the Company

CMS Info Systems Ltd. is India’s largest cash management company based on the number of ATM points and retail pick-up points as of March 31, 2021. They cater to a broad set of outsourcing requirements for banks, financial institutions, organized retail and e-commerce companies in India. They have a pan-India fleet of 3,965 cash vans and a network of 238 branches and offices in India as of August 31, 2021. CMS Info operates business in three segments such as 1) Cash Management services; 2) Managed Services and 3) Others.

Further, 1) Cash management services, which include end-to-end ATM replenishment services, cash pick-up and delivery, network cash management and verification services and cash-in-transit services for banks, 2) Managed services, which include banking automation product sales, deployment and associated annual maintenance, end-to-end brown label deployment and managed services for banks, common control systems and software solutions as well as remote monitoring for ATMs, etc. 3) Others, which include end-to-end financial cards issuance and management for banks and card personalization services.

Objects of the Issue

* To carry out an offer for sale of equity shares by promoters;

* To achieve the benefits of listing the equity shares on the stock exchanges;

Valuation

The revenue of the Indian cash management market grew at a CAGR of ~10% to Rs 27.7bn between FY10-21, mainly due to an increase in the services such as cash vault services, bullion management, cash processing and others. This market is expected to grow at a CAGR of 19.1% and reach Rs 79bn by FY27, largely driven by increasing ATMs as well as customer base in the form of e-commerce, organized retail chains, jewelers, gold loan companies and hospital chains. With less competition and high entry barriers in the sector, we believe leading players like CMS Info would benefit from industry trends.

The company is well placed with a market share of 24.7% based on the total number of ATMs serviced and a market share of 41.1% based on the total number of outsourced ATMs. They have a strong network across pan-India and have long-standing relationships with leading banks. Besides, they offer integrated services to customers and provide them with a one-stop solution which is an added advantage. Going forward, the company’s focus is on expanding its network in semi-urban and rural markets and growing the customer base by adding new customers. Also, it aims to continue to develop processes and systems which would support its business and operations to grow. The company has further plans to expand into three new business areas which include remote monitoring outside of the ATM and banking sectors, end-to-end currency management and financial services distribution. The company’s financials have been healthy and it has posted revenue/PAT CAGR of 7%/32% over FY19-21. From a long term perspective, we have a positive view on the company.

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SEBI Registration number is INZ000174330

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