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Radiant Cash Management Services Ltd raises Rs 116 crore from anchor investors

Radiant Cash Management Services Limited is an integrated cash logistics player with leading presence in retail cash management (“RCM”) segment of the cash management services industry in India and are one of the largest players in the RCM segment in terms of network locations or touch points served as of March 31, 2022 has garnered Rs 116.38 crore from anchor investors ahead of its initial public offering that opens for public subscription on Friday, December 23, 2022. The company informed the bourses that it allocated 1,17,55,681 shares at Rs. 99 per share on Thursday, December 22, 2022, to anchor investors.

Prominent Investors have bought 1.17 crore shares in the company via anchor book such as HDFC Trustee, Aditya Birla Sun Life Trustee, Emerging Business Fund, Alchemy Emerging Leaders of Tomorrow, Citigroup Global Markets, Dovetail India Fund, Societe Generale, BNP Paribas Arbitrage, UTI Mutual Fund, and Saint Capital Fund.

Out of the total allocation of 1,17,55,681 Equity Shares, 32,32,800 Equity Shares (i.e 27.50% of the Total Allocation to Anchor Investors) were allocated to 3 domestic mutual funds through a total of 5 schemes.

Founded in 2005 by Col. David Devasahayam, Radiant Cash Management Services (RCMS) provides 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. Its marquee clients include some of the largest foreign, private and public sector banks, including 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 and the end user of its services include some of the largest e- commerce companies, retail chains, NBFCs, insurance firms, ecommerce logistics players, railways and retail petroleum distribution outlets.

For the four months ended July 31, 2022 and for fiscal 2022, the total annual currency movement, or the total value of the currency passing through its RCM business, amounted to Rs 48,585 crore and Rs 1,30,380 crore respectively. In fiscal 2021, Radiant had the second highest EBITDA margin, ROCE and ROE amongst organised players in the cash management services segment.

It operates its business across five verticals, namely cash pick-up and delivery; network currency management (also known as cash burial in industry parlance); cash processing; cash vans /cash in transit and other value added services.

As of July 31, 2022, it had a fleet of 739 specially fabricated armoured vans through a combination of leased vehicles, short term contractual basis and own vehicles. It has ateam consisting of 8,780 persons, including employees and contractual workers.

Radiant Cash Management Systems’ revenue from operations increased 29.04% to Rs 286.04 crore for Fiscal 2022 from Rs 221.67 crore during the year ended March 2021, while its profit after tax during the year grew 17.81% to Rs 38.21 crore for Fiscal 2022 from Rs 32.43 crore for Fiscal 2021.

For the three months ended June 30, 2022 was Rs 84.05 crore and profit after tax stood at Rs 15.32 crore.

IIFL Securities Limited, Motilal Oswal Investment Advisors Limited, and Yes Securities (India) Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

IPO Details

The public issue with a face value of Re 1 per equity share comprising a fresh issue of up to Rs 60 crore and an offer for sale up to 33,125,000 equity shares by existing shareholders.

The Offer for Sale comprises up to 10,125,000 equity shares by Col. David Devasahayam (“Promoter Selling Shareholder”) and up to 23,000,000 equity shares by Ascent Capital Advisors India Private Limited (“Investor Selling Shareholder”).

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Friday, December 23, 2022, and closes on Tuesday, December 27, 2022. The price band for the Offer has been determined at Rs 94 – Rs 99 per equity share.

The IPO will fetch Rs 388 crore at the upper end of the price band.

Investors can bid for a minimum of 150 equity shares and in multiples of 150 equity shares thereafter.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

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