CMS Info Systems IPO - Subscription Day 1
5paisa Research Team
Last Updated: 21st December 2021 - 10:30 pm
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 of the IPO. As per the combined bid details put out by the BSE at the end of Day-1, CMS Info Systems IPO was subscribed just 0.40X or 40% overall, with demand coming mainly from the retail segment. The issue will close for subscription on Thursday, 23rd December.
As of close of 21st December, out of the 375.61 lakh shares on offer in the IPO, CMS Info Systems saw bids for 148.92 lakh shares. This implies an overall subscription of 0.40X or 40%. The granular break-up of subscriptions was dominated by the retail with hardly any contribution from the HNIs and QIBs on the first day.
Normally, it is only on the last day of bidding, the HNI bids and the QIB bids build up substantial momentum so the first day may not present a very clear picture.
CMS Info Systems IPO Subscription Day 1
|
Category |
Subscription Status |
|
Qualified Institutional Buyers (QIB) |
0.00 Times |
|
Non Institutional Investors (NII) |
0.01 Times |
|
Retail Individuals |
0.79 Times |
|
Employees |
N.A. |
|
Overall |
0.40 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 Nil shares at the close of Day-1, implying Nil subscription for QIBs at the end of Day-1. QIB bids typically get bunched on the last day but the institutional interest in the anchor placement does give evidence of strong institutional appetite for the IPO.
HNI / NII Portion
The HNI portion got subscribed 0.01X or 1% (getting applications for 1.07 lakh shares against the quota of 80.49 lakh shares). This is tepid response on Day-1 and this segment actually sees most of response bunched on the last day of the issue. Bulk of the funded applications and corporate applications, came in on the last day of the IPO only.
Retail Individuals
The retail portion was subscribed a relatively decent 0.79X or 79% at the close of Day-1, showing decent 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 147.86 lakh shares, which included bids for 116.07 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.205-Rs.216) and will close for subscription on 23rd December 2021.
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