CMS Info Systems Promoter Offloads 19.4% Stake For Rs 1,071 Crore

CMS Info Systems Ltd. promoter Sion Investment Holdings on Thursday divested a 19.4% stake in the company for Rs 1,071 crore through open market transactions.

Aditya Birla Sun Life Mutual Fund, ICICI Prudential MF, Societe Generale, Public Sector Pension Investment Board, Abu Dhabi Investment Authority Stable, Nomura, Massachusetts Institute of Technology and Goldman Sachs were the buyers of the shares.

Sion Investment Holdings is an affiliate of private equity firm Baring Private Equity Asia (now known as BPEA EQT).

Following the stake sale, shares of CMS Info Systems plunged 6.95% to close at Rs 364.05 apiece on the BSE.

According to the bulk deal data available with the BSE, Sion Investment Holdings sold 3,00,00,000 shares, amounting to 19.4% stake in the cash management and payment solutions company.

The shares were offloaded at an average price of Rs 357.17 apiece, taking the aggregate transaction size to Rs 1,071.51 crore.

Post the transaction, Sion's shareholding reduced to 27.05% from a 46.48% stake in CMS Info Systems earlier at the end of the June quarter.

In June this year, Sion Investment pared nearly a 14% stake in CMS Info Systems for Rs 638 crore through an open market transaction.

Last month, CMS Info Systems reported a 22% growth in net income to Rs 87 crore for the June 2023 quarter on higher revenue.

Its revenue grew 13% year-on-year to Rs 512 crore in the reporting quarter, from which it earned a margin of 29.6%.