CMS Info Systems Shares Drop 8% After Large Stake Change

10 Aug 2023 , 01:56 PM

CMS Info Systems Ltd witnessed an approximate 8 % decline in its shares on August 10, subsequent to a substantial volume of trades that involved the transfer of 3.2 crore shares, corresponding to a 21.6 % stake worth Rs 1,163 crore.

The specifics of the buyers and sellers involved were not immediately available as per information from CNBC-TV18.

An analogous large block deal had occurred in June, where the promoter of CMS Info Systems, Sion Investment Holdings Pte Limited (an affiliate of Baring Private Equity Asia), had divested a 13.8 % stake amounting to Rs 638 crore. Noteworthy investors acquiring shares included Abu Dhabi Investment, Norges Bank, and ValueQuest.

The company recently declared a 22 % year-on-year rise in net profit for the April-June quarter, amounting to Rs 84.28 crore compared to Rs 69 crore in the previous year. Consolidated revenue for the quarter stood at Rs 518.25 crore, showcasing a 13.72 % growth compared to the previous year.

Rajiv Kaul, Executive Vice-Chairman, Whole-time Director, and CEO of CMS Info Systems, expressed satisfaction with the quarter’s performance, attributing the 20 %-plus earnings growth to their leadership in cash logistics and the expansion of managed services and technology business.

Despite challenges such as unseasonal rain affecting rural consumption and the withdrawal of Rs 2,000 currency notes, Kaul emphasized the company’s focus on achieving the strategic goal of doubling revenues from FY21 to FY25.

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