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  • Writer's pictureJatin Agarwal

Radiant Cash Management IPO



Company and IPO Overview

Promoters of Radiant Cash Management – Col. David Devasahayam and Dr. Renuka David, the company was incorporated in the year 2005.


The company is an integrated cash logistics player with leading presence in retail cash management (RCM) segment of the cash management services industry in India. They are a market leader in the retail cash management (RCM) segment, additionally they are one of the largest players in the RCM segment in terms of network locations or touch points served as of 31 July 2021. In the fiscal year 2020, it had the highest EBITDA margin, ROCE and ROE amongst organized players in the cash management services segment.


Radiant Cash Management Services provide services across 13,044 pin codes around the country covering all districts (excluding Lakshadweep) with about 55,513 touchpoints serving more than 5,388 locations as of July 31,2022.

The company operates its business mainly in five areas , namely : Cash pickup and delivery, network currency management, cash processing, cash vans/cash in transit; and other value added services.


The key client name includes: Axis Bank Limited, Citibank, Deutsche Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The HongKong and Shanghai Banking Corporation Limited and Yes Bank Limited.


Radiant Cash Management IPO is a main-board IPO. They are going to raise Rs 387 Crores via IPO. The issue is priced at Rs 94 to Rs 99 per equity share. The retail quota is 35%, QIB is 50%, and HNI is 15%. The IPO is to be listed on BSE & NSE.


Financials (rounded off)

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2020

252

36.5

31/03/2021

224

32.4

31/03/2022

287

38.2

Objective of the Issue

1. Prime objective of the IPO is to meet working capital needs.

2. The proceeds will also be utilized for capital expenditure towards purchasing specially fabricated armored vans.

3. The balance proceeds will be used for general corporate purposes.


IPO Details

IPO Date

23/12/2022-27/12/2022

Face Value

₹1 per share

IPO Price Band

₹94 to ₹99 per share

IPO Lot Size

150 Shares

Listing at

NSE, BSE

Basis of Allotment

30/12/2022

Credit of Shares in Demat

03/01/2022

Listing Date

04/01/2022

Pre-Issue Shareholding

66.39%

Post-Issue Shareholding

53.21%

Retail Minimum Lot Size

150 shares (₹14,850)

Major Strengths and Opportunities for Radiant Cash Management:

+ An experienced management team and backed by a reputed institutional investor Ascent Capital.

+ The RCM market is expected to grow at a CAGR OF 20.3% between FY21-FY27.

+ The technology is quite robust which can contribute to high operational profitability.


Major Risks and Threats for Radiant Cash Management:

- Any policy which might adversely affect the Indian banks relating to their utilization of and demand of cash management services.

- Heavy dependence on a limited number of customers for its revenue generation , Top 5 customers contributed 65% of the revenue in QIFY22.

- Exposure to various operational risks, including robbery, third party fraud , theft or embezzlement by employees.


Crisp Insights

1) The current market sentiment is very negative and investors should be very careful while investing in any IPO right now.

2) GMP is currently around ₹3 which is insignificant.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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