CMS Info Systems IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 15th December 2022 - 08:10 am

The Rs.1,100 crore IPO of CMS Info Systems, consisting entirely of an offer for sale (OFS) of Rs.1,100 crore, saw tepid response on Day-1 and Day-2 of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, CMS Info Systems IPO was subscribed just 1.95 times overall, with all the 3 segments of retail, HNI and QIB getting just about subscribed. The issue has closed for subscription on Thursday, 23rd December.

As of close of 23rd December, out of the 375.61 lakh shares on offer in the IPO, CMS Info Systems saw bids for 732.72 lakh shares. This implies an overall subscription of 1.95 times. The granular break-up of subscriptions was almost equally split between the retail, HNI and QIB segments. Normally, on the last day of bidding, the HNI bids and the QIB bids build up substantial momentum, but even that aggression was not visible on Day-3.

CMS Info Systems IPO Subscription Day 3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	1.98 Times
Non Institutional Investors (NII)	1.45 Times
Retail Individuals	2.15 Times
Employees	N.A.
Overall	1.95 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 20th December, CMS Info Systems did an anchor placement of 1,52,77,777 shares at the upper end of the price band of Rs.216 to 12 anchor investors raising Rs.330 crore, representing 30% of the overall issue size.

The list of QIB anchors included some global names like Nomura India Mother Fund, WF Asia Reconnaissance Fund, Theleme India Master Fund and BNP Paribas. Domestic investors in the anchor placement included SBI MF, SBI Life Insurance, ICICI Prudential MF, Aditya Birla Sun Life MF and Abakkus Fund. Anchor investors have a mandatory lock in of 1 month.

The QIB portion (net of anchor allocation as explained above) has a quota of 107.32 lakh shares of which it has got bids for 212.99 shares at the close of Day-3, implying 1.98 times subscription for QIBs at the end of Day-3. QIB bids typically get bunched on the last day but the institutional interest in the anchor placement did not translate into strong institutional appetite for the IPO in the QIB segment.

HNI / NII Portion

The HNI portion got subscribed 1.45 times (getting applications for 116.46 lakh shares against the quota of 80.49 lakh shares). This is tepid response on Day-3 and this segment actually sees most of response bunched on the last day of the issue, which was not to be. Bulk of the funded applications and corporate applications come in on the last day of the IPO only, but the funding applications were clearly missing.

Retail Individuals

The retail portion was subscribed a relatively decent 2.15 times at the close of Day-3, showing relatively better retail appetite; as has been the general trend with small and mid-sized IPOs. It must be noted that retail allocation is 35% in this IPO.

For retail investors; out of the 187.80 lakh shares on offer, valid bids were received for 403.27 lakh shares, which included bids for 311.53 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.205-Rs.216) and has closed for subscription on 23rd December 2021.

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