Rajiv Kaul boosts stake in CMS Info Systems to 6.2% amidst strong company growth
In a significant move within the Indian business services sector, Rajiv Kaul, the Executive Vice Chairman, Whole Time Director, and CEO of CMS Info Systems (CMSINFO), has increased his stake in the company from 2.62% to 6.20%. This development comes as a strong indicator of confidence from the leadership in the company’s growth trajectory and future prospects.
CMS Info Systems, a leading business services platform, has witnessed remarkable growth since its initial public offering (IPO) on Indian exchanges in December 2021. The company, acquired by Baring Private Equity Asia (Sion Investment Holdings) from Blackstone Private Equity (Blackstone FP Capital Partners) and other shareholders in 2015, has shown a robust Compound Annual Growth Rate (CAGR) of 34% in earnings over the last two years. This performance underscores the company’s successful exit for Baring Private Equity Asia, which has fully exited its investment through the IPO and subsequent sell-downs in the last year.
Rajiv Kaul’s decision to increase his stake is a testament to his dedication and belief in the company’s mission. “I started this journey with a dream to make CMS a public institution. Today, we are one of the few unique companies in India with a 100% public shareholder base,” said Kaul. He highlighted the significant growth in revenues at a 17% CAGR and earnings at over 20% CAGR in the last 15 years. The company’s valuation has also compounded at an XIRR of over 25% during the same period. Kaul’s investment is a clear demonstration of commitment to expanding CMSINFO’s offerings and continuing its high growth and strong profits track record.
Looking ahead, CMS Info Systems aims to become India’s premier business services platform, leveraging its extensive network, cutting-edge technology, and a solutions-oriented mindset to address complex challenges for clients in the BFSI (Banking, Financial Services, and Insurance) and retail sectors. With India on the path to becoming a $7 trillion economy by 2030, CMSINFO is well-positioned to capitalize on both the consumption and outsourcing opportunities that this growth presents. “I strongly believe that today’s India can nurture world-class services companies that operate domestically without relying on dollar growth and labor arbitrage margins from international expansion,” Kaul added.
This strategic increase in stake by Rajiv Kaul not only signifies a strong vote of confidence in CMS Info Systems’ current position and future direction but also highlights the company’s potential role in India’s broader economic expansion and the global business services landscape.
The move by Rajiv Kaul to increase his stake in CMS Info Systems reflects a broader trend of executive leadership investing heavily in their companies, signaling strong future growth prospects and stability. This strategy not only enhances shareholder value but also strengthens investor confidence in the company’s governance and strategic direction. As India continues to emerge as a global powerhouse in the business services sector, CMSINFO’s focus on innovation, customer service, and strategic expansion will likely play a pivotal role in shaping the industry’s future.