• Based on the upper band, Radiant Cash Management IPO is expected to fetch ₹388 crore
The initial public offer (IPO) of Radiant Cash Management Services was subscribed 11% on the second day of subscription on Monday. The initial share-sale received bids for 29,76,450 shares against the offer of 2,74,29,925 shares. The issue opened on December 23 and will close on Tuesday, December 27, 2022. The company has fixed a price band of ₹94 to ₹99 per share for its ₹388-crore public offer.
Radiant Cash Management IPO has a fresh issue of up to ₹60 crore and an offer for sale (OFS) of up to 33,125,000 equity shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India. Based on the upper band of the share price, the public issue is expected to fetch ₹388 crore. Investors can bid for a minimum of 150 Equity Shares and in multiples of 150 Equity Shares thereafter.
The proceeds from the fresh issue component will be used for working capital requirements as well as capital expenditure requirements for procurement of specially built armored vans.
Incorporated in 2005, Radiant Cash Management Services Limited is a market leader in retail cash management services for banks, financial institutions and organized retail and e-commerce companies in India. The company offers a range of services under this segment including collection and delivery of cash from the end user on behalf of its customers. In 2015, Ascent Capital acquired 37.2 per cent stake in the company.
“Looking at the leading integrated cash logistics player, strong financial track record with healthy double digit operating margin (EBITDA margin of 20%) and double digit return on investment ratio (ROE of 27.3%), strong pan India presence, multiple key customers , focus on continuous technology improvements and attractive valuations, we recommend 'Subscribe' to the issue," Reliance Securities said in an IPO note.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are the Book Running Lead Managers to the Issue. Link Intime India Private Limited is the Registrar to the Initial Share Sale. The shares of the company are expected to be listed on BSE, NSE next week on Wednesday, Jan 4, 2023.
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