Radiant Cash Management Services Ltd IPO Details with Share Price and Issue Size
| Opening Date | 23, December 2022 |
| Closing Date | 27, December 2022 |
| Refund Initiation | 02, January 2023 |
| Listing Date | 04, January 2023 |
| Face Value | ₹1 per equity share |
| IPO Price Band | ₹94 to ₹99 per equity share |
| Minimum Order Quantity | 150 Shares |
| Issue Size | ₹387.94 Cr |
The December IPO season is here. In less than 20 days, the month saw 5 public issues going live. In the same month, India’s largest wine producer and seller - Sula Vineyards debuted in the market. While the IPO turned out to be an empty shell, listing of some issues such as - Abans Holdings, Landmark Cars and KFin Technologies is still awaited. Moreover, the IPO season is still blooming, with one more IPO coming live on 23rd December i.e - Radiant Cash Management Services Ltd. In this article, let’s study the details of this IPO and know whether it is a good opportunity to invest in or not.
About the Company -
Incorporated in the year 2005, Radiant Cash Management Services ltd is an integrated cash logistics player with leading presence in retail cash management. The company operates business across five verticals, namely
- Cash pick-up and Delivery;
- Network Currency Management;
- Cash Processing;
- Cash Vans/Cash-in-transit; and
- Other value-added services
The customers for the company include some of the largest foreign, private and public sector banks, and the end user of services include some of the largest e-commerce companies, retail chains, NBFCs, insurance firms, eCommerce logistics players, railways and retail petroleum distribution outlets.
The company is one of the largest players in the RCM segment in terms of network locations or touch points served as of March 31, 2022.
The financials of the company for the last three financial years are given as below:
| Particulars | Three month period ended June 30, 2022 | As of and for the Financial Year ended March 31 | ||
| 2022 | 2021 | 2020 | ||
| Equity share capital | 10 | 10 | 1 | 1 |
| Networth | 131 | 114 | 95 | 66 |
| Total Borrowings | 26 | 27 | 11 | 21 |
| Revenue from Operations | 84 | 286 | 222 | 248 |
| EBITDA | 22 | 59 | 50 | 56 |
| Profit after Tax | 15 | 38 | 32 | 37 |
| Earnings per Share (diluted) | 1.5* | 3.8 | 3.2 | 3.6 |
| Return on Equity | 10% | 27% | 26% | 31% |
| Return on Capital Employed | 11%* | 33% | 33% | 38% |
| Net asset value | 15.3 | 13.8 | 12.6 | 11.8 |
| (In ₹ per share) | ||||
all numbers stated are in crore, except share data.
*not annualized
Radiant Cash Management Services Ltd details -
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Radiant Cash Management Services Ltd date and its share price.
Radiant Cash Management Services Ltd issue date -
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from December 23 and will be available for subscription until December 27, 2022.
Radiant Cash Management Services Ltd issue size -
The total issue size of the latest Radiant Cash Management Services Ltd India Ltd is declared to be ₹387.94 crores. This is a mix of fresh issues and an offer for sale. The company is offloading 3,31,25,000 equity shares in OFS, by promoter Col. David Devasahayam and Dr Renuka David. The selling shareholder will get all the proceeds and the company will receive the money only from the fresh issue of 60,60,606 shares.
50% of the offer is for QIBs (Qualified Institutional Buyers), 15% for retail investors, and the balance 35% for NIBs (Non-institutional Investors).
Radiant Cash Management Services Ltd share price
The price band of the company’s upcoming IPO is declared to range between ₹94 to ₹99 per equity share
Radiant Cash Management Services Ltd listing
Since the IPO of Radiant Cash Management Services Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
Radiant Cash Management Services Ltd's objectives
The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:
- Funding working capital requirements
- Funding of capital expenditure requirements for the purchase of specially fabricated armored vans
Radiant Cash Management Services Ltd Strengths
- One of the two leading investor solutions providers in India as on Q2FY23; providing services to 24 out of 41 AMCs in India, (59% of market share basis number of AMC clients)
- Diverse multi-asset servicing platform with operation in many large markets
- Unique “platform-as-a-service” business model with comprehensive end-to-end solutions
- The asset-light business model with a recurring revenue model
- Long-standing relationship with customers
Radiant Cash Management Services Ltd India Ltd risks
- Significant disruptions in information technology systems or breaches of data security
- A significant portion of revenue derived from MF clients
- 50% of Revenue derived from Top 5 Customers
- Subject to SEBI & PFRDA regulations
Conclusion
If you wish to become a part of this exciting IPO opportunity, you will need to have an online Demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.
If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!
It’s all easy. It’s all good.
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