Radiant Cash Management IPO price band revealed; issue opens for subscription this week

The three-day initial public offering (IPO) of Radiant Cash Management Services Ltd will open for public subscription this week on Friday, December 23, 2022 till Tuesday, December 27, 2022. The public issue will comprise of a fresh issuance of shares worth ₹60 crore and an offer for sale (OFS) of 3.31 crore shares by the promoters and investors.

The public issue is priced at ₹94 to ₹99 per share. Investors can bid for a minimum of 150 Equity Shares and in multiples of 150 Equity Shares thereafter. The net proceeds of the fresh issue will be used for funding working capital requirements, capital expenditure requirements for the purchase of specially fabricated armoured vans and general corporate purposes.

Incorporated in 2005, Radiant Cash Management Services Limited is the 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 consisting of collection and delivery of cash on behalf of its clients from the end user.

Radiant provide services across 13,044 pin codes in India covering all districts (other than Lakshadweep) with about 55,513 touch points serving more than 5,388 locations as of July 31, 2022.

Some of its key clients include Axis Bank, Citibank, Deutsche Bank Limited, HDFC Bank Limited, ICICI Bank, Kotak Mahindra Bank, State Bank of India, Yes Bank.

The company's promoter David Devasahayam will be selling 1.01 crore shares, whereas Ascent Capital Advisors India will offload 2.3 crore shares by the OFS.

IIFL Securities, Motilal Oswal Investment Advisors, and YES Securities are the book running lead managers to the initial share sale. Link Intime India Private Ltd is the registrar for the IPO. The shares of the company are proposed to be listed on leading stock exchanges BSE and NSE on January 4, 2023.