PE firm EQT sells residual 26.67% stake to exit CMS

Mumbai: Private equity firm EQT (formerly known as Baring Private Equity Asia) completed the divestment of its remaining 26.67% stake in CMS Infosystems, India's leading cash-management entity, for approximately ₹1,547 crore on Tuesday. This move marks the complete exit of the private equity firm from the cash management company, which it initially acquired in 2015, realising a three-fold return on its investment.

According to BSE bulk deal data, the shares were offloaded at ₹370.38 per share to various investors, including Nomura, Kotak Mutual Fund, Ward Ferry Asia, and ICICI Prudential Mutual Fund, among others. Sion Investment Holdings, an affiliate of Baring Private Equity Asia, held 41.7 million shares, or 26.67% stake in the company as of December 31, 2023.

Shares of CMS Infosystem declined 3.22% to close at ₹384.65 on Tuesday.


In 2015, EQT initiated its investment in CMS Info Systems by acquiring a 100% stake from Blackstone and the Grover family for approximately ₹2,000 crore. The transaction involved Baring securing full ownership of CMS Info Systems, comprising 53% from Blackstone, 37% from the Grover family, and the remaining 10% from the management team headed by Kaul.

In December 2021, EQT divested approximately 34% of its stake in the company through a public issue, fetching approximately ₹1,100 crore. The stock which listed in 2021 has delivered 65% returns since the IPO.

Subsequently, in June 2023, the private equity firm further offloaded a 13.8% stake for ₹638 crore. Following this, in August 2023, Baring executed another sale, this time disposing of approximately 20% of its stake for ₹1,072 crore.

In 2009, Blackstone partnered with Rajiv Kaul, former chief executive of Microsoft India, to acquire a majority stake in CMS Info Systems from the Grover family, the company's founders.