The initial public offer (IPO) of Radiant Cash Management Services (Radiant CMS) received bids for 1,46,27,700 shares as against 2,74,29,925 shares on offer, according to stock exchange data at 21:00 IST on Tuesday (27 December 2022). The issue was subscribed 0.53 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 1.01 times. However, the Retail Individual Investors (RIIs) category was subscribed just 21% and the Non-Institutional Investors (NIIs) category was subscribed 66%.

The issue opened for bidding on 23 December 2022 and it closed on 27 December 2022. The price band of the IPO was fixed at Rs 94-99 per share.

The offer comprised fresh issue of equity shares worth upto Rs 60 crore and an offer for sale of upto 3,31,25,000 equity shares.

The promoter Col. David Devasahayam is selling 101.25 lakh equity shares and investor shareholder Ascent Capital Advisors India is selling 230 lakh equity shares in OFS. The promoter and promoter group shareholding would decline to 53.2% post IPO from 66.4% pre-IPO.

Out of the net proceeds of Rs 60 crore from fresh issue, the company proposes to use Rs 20 crore for working capital requirement and Rs 25.48 crore for capital expenditure requirement for purchase of 220 specially fabricated armoured vans.

The company also expects to receive the benefits of listing of the equity shares on the stock exchanges and enhancement of company brand name amongst existing and potential customers and creation of a public market for equity shares in India.

Ahead of the IPO, Radiant Cash Management on 22 December 2022, raised Rs 116.38 crore from anchor investors. The board allotted 1.17 crore shares at Rs 99 each to 16 anchor investors.

Radiant Cash Management Services is an integrated cash logistics player with leading presence in retail cash management (RCM) segment of the cash management services industry 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. It is one of the largest players in the RCM segment in terms of network locations or touch points served as on 31 March 2022.

The client base covers some of India's largest foreign, private sector and public sector banks such as Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The Hongkong and Shanghai Banking Corporation and Yes Bank.

The company reported a net profit of Rs 15.32 crore and income from operation of Rs 84.05 crore for the three months ended on 30 June 2022.

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