CMS Info Systems drops 7% after 43 mn shares change hands via block deal

Shares of CMS Info Systems crashed 6.8 per cent to Rs 370 per share after over 27 per cent of the total equity changed hands on the counter via block deals. The shares, however, were quick to recover from their lows to trade just 1 per cent lower (at Rs 393 per share) at 10:05 AM. By comparison, the benchmark S&P BSE Sensex was up 0.1 per cent.

At 9:15 AM, 42.83 million shares, representing 27.37 per cent of the total equity of the company, changed hands on the counter on the BSE at Rs 382.7 apiece. The value of the deal was approximately Rs 1,594 crore.

While the names of the buyers and sellers could not be asscertained immediately, reports suggested that promoter firm Sion Investment was looking to sell its entire 26.7 per cent stake in the company through block deals.

At the end of the December quarter, Sion Investment Holdings Pte. Limited, the promoter group, held 26.69 per cent stake in the company. 

Among Public shareholders, Mutual Funds held 20.58 per cent stake, Alternate Investment Funds 2.84 per cent stake, and Foreign Portfolio Investors 23.33 per cent stake.

CMS Info Systems is a business services company providing logistics and technology solutions to banks, financial institutions, organised retail, and e-commerce companies in India.

During the October-to-December quarter, it reported a consolidated net profit of Rs 87 crore, up 14 per cent from Rs 76-crore PAT reported a year ago. 

Revenue from operations increased 19 per cent Y-o-Y to Rs 582 crore vs Rs 488 crore last year.

The company's total order book grew to Rs 4,400 crore by the end of Q3FY24, Rajiv Kaul, executive vice chairman, whole-time director and CEO, said.

"Basis the execution and order book, we aim to grow between 17 per cent - 19 per cent in FY24 and have total revenues in the range of Rs 2,250-2,300 crore for FY24," he added.

Over the past one year, shares of CMS Info Systems have surged 43.35 per cent on the BSE as against 22.77 per cent gain in the benchmark Sensex index. The stock of CMS hit a 52-week high (also its record high) of Rs 421 on November 29, 2023, and a 52-week low of Rs 261 on March 28,2023. The stock hit an all-time low of Rs 210 on June 27, 2022.