Radiant Cash Management IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHPLast Updated Date: Jan 04, 2023
Incorporate in 2005, Radiant Cash Management Services is taking its first step to becoming a public enterprise by opening its Radiant Cash Management Services IPO subscription on December 23, 2022.
Through the three-day public offering, the company is aiming to raise approximately Rs.387 Cr. in the fund.
Radiant Cash Management Services is run by an experienced management team and houses the funds of reputed institutional investors. The major operations of the firm constitute Retail Cash Management.
They enjoy a diversified customer base and also hold client loyalty, which allows them to cross-sell value-added services. This enables them to maintain a track record of strong financial performance.
This article covers the relevant detail and the Radiant Cash Management Services IPO review. Thus, read ahead to get the complete guide on the important dates and price bands.
|Face Value||Rs 1|
|Price Band||Rs 94 to Rs 99|
|Listing At||BSE, NSE|
|Min. Order Quantity||150 Shares|
|Listing Date||Jan 4, 2023|
|Offer for Sale||Rs.327.94 Crore|
|Fresh Issue||Rs.60.00 Crore|
|IPO Size||Rs.387.94 Crore|
Radiant Cash Management IPO Overview
Radiant Cash Management Services is an integrated cash logistics firm with a significant presence in the RCM industry.
They specialize in providing an end-to-end solution for cash management to organized e-commerce/retail companies, financial institutions, and banks.
The Radiant Cash Management Services IPO will have a fresh issue worth Rs.60 Cr. and an offer for sale of Rs.327.94 Cr.
The net proceeds generated from the three-day IPO event will be utilized in funding immediate working capital requirements and meeting the necessary capital expenditure.
Radiant Cash Management IPO Important Dates
|IPO Opening Date||Dec 23, 2022|
|IPO Closing Date||Dec 27, 2022|
|Basis of Allotment Finalization||Dec 30, 2022|
|Refunds Initiation||Jan 2, 2023|
|Credit of Shares to Demat Account||Jan 3, 2023|
|Share Listing Date||Jan 4, 2023|
The next important detail to address after the purpose of the IPO is the tentative timetable covering the Radiant Cash Management Services IPO dates.
The Radiant Cash Management Services IPO listing starts on December 23, 2022, and will continue for 3 days, closing on December 27, 2022. The investors are open to subscribe to the listing from 10:00 AM on Dec 23, till 5:00 PM on Dec 27.
The allotment will be done on December 30, 2022, and oversubscribed shares will be refunded on January 2, 2023. The listing will be publicized on January 4, 2023.
Radiant Cash Management IPO Price, Size, Share Offerings
|Price Band||Rs 94 to Rs 99|
|Offer for Sale||Rs.327.94 Crore|
|Fresh Issue||Rs.60.00 Crore|
|IPO Size||Rs.387.94 Crore|
The Radiant Cash Management Services IPO is listed in both NSE and BSE. The face value is Re.1 per share with a Radiant Cash Management Services IPO Price band of Rs.94 to Rs.99 per share.
The Radiant Cash Management Services IPO size is 3,91,85,606 shares aggregate with 15% as a fresh issue and the remaining 85% as OFS.
The minimum retail investor lot size is 150 shares, and the maximum is 13 lots worth 1,950 shares. The minimum lot for S-HNI is 14 worth 2,100 shares and for B-HNI, the lot size is 68 with 10,200 shares.
The oversubscribed shares can get refunded or distributed using a pro-rata approach.
Radiant Cash Management IPO Grey Market Premium
|Date||GMP (Rs.)||Kostak Rate (Rs.)||Subject to Sauda (Rs.)|
|4 January||Rs 3||NA||NA|
|3 January||Rs 3||NA||NA|
|2 January||Rs 3||NA||NA|
|1 January||Rs 3||NA||NA|
|31 December||Rs 3||NA||NA|
|30 December||Rs 3||NA||NA|
|29 December||Rs 3||NA||NA|
The grey market premium is the additional amount that gets added to the price band when the stock is traded in the grey market.
Usually, when the demand for the IPO is high, the premium is also high. Experienced investors use this premium as a parameter to estimate if the new stock will do good in the market.
Currently, the Radiant Cash Management Services IPO GMP is Rs. 0 (+/-). Thus, it is being traded in the given price band of Rs.99. there has not been much movement in terms of demand on the grey market, however, you can stay tuned to know the day-to-day performance of the IPO in the market.
Radiant Cash Management IPO Subscription Status
|Day / Date||QIB||NII||RII||Total Subscription|
|1st Day – 23rd Dec||0.05x||0.00x||0.06x||0.04x|
|2nd Day – 26th Dec||0.16x||0.03x||0.12x||0.11x|
|3rd Day – 27th Dec||0.98x||0.65x||0.20x||0.52x|
|Shares Offered or Net Issue||7,837,121||5,877,841||13,714,963||27,429,925|
The Radiant Cash Management Services IPO Subscription will soon be updated here as the bidding window opens. However, there is quite a buzz about the IPO in the market and many HNI are deciding to take part in the listing.
The lead managers who are actively handling the listing are:
- IIFL Securities Ltd
- Motilal Oswal Investments Advisors Private Limited
- YES Bank Limited
Every one of the above-listed institutions is quite a known name in the BFSI industry. Thus, the market participants are assured that the entire IPO subscription will be handled smoothly.
Radiant Cash Management IPO Allotment Status
The information on the IPO allotment status will be available as the IPO goes live on December 23. The company has already publicized the quota it has allotted to each class of investor.
The Radiant Cash Management Services IPO Allotment has been kept at 50% for the qualified institutional buyer, 35% for retail investors, and 15% for non-institutional bidders or HNIs.
The registrar of the IPO is one of the known organizations of India, Link Intime India Pvt. Ltd. They have a strong track record of serving some of the prominent names in the country. They operate across India in the corporate registry and IPO business.
Radiant Cash Management IPO Live Performance
As the IPO goes live, you can find all the updates on its performance by clicking on this link here taking you directly to the Radiant Cash Management Services performance page.
The redirected page will show all the details on the allotment status, market response, and Radiant Cash Management Services Share Price.
Subscribe to Radiant Cash Management IPO – Open Free Demat Account Now!
Latest Radiant Cash Management IPO News
Radiant Cash Management Services is one of the leading market holders in the retail cash management industry. They have a strong core management that overlooks the entire operations of the organization.
Under their guidance, the company has one of the highest EBITDA margins when compared with the peer companies.
In the DRHP proposed by the firm to the SEBI, they have clearly stated that the net proceeds from the initial public offering will be used for operational expenditure and also investing in purchasing armoured vans for transportation purposes.
To stay updated with the different details regarding the listing, do not forget to tune in to the Radiant Cash Management Services IPO news.
Radiant Cash Management – Company Review
Radiant Cash Management Services is one of the largest retail cash management firms covering 13,044 pin codes in India. To this date, it has successfully served more than 5,388 locations and touched 55,513 points of service.
The company has a staff of 2,012 employees and offers multiple verticals of services to its esteemed clients. The services can range from a collection of cash to delivery of the same as per the client’s orders.
The key clients of the company include Yes Bank Limited, Axis Bank Limited, The Hongkong and Shanghai Banking Corporation Limited, Citibank, State Bank of India, Deutsche Bank Limited, Standard Chartered Bank, HDFC Bank Limited, Kotak Mahindra Bank, ICICI Bank Limited.
Products or Services
The company successfully provides five different verticals of products to its customer base. The same are listed below:
- Cash processing: Trained executives helping with the sorting of cash.
- Cash pick-up and delivery: The firm collects and delivers the cash to the delivery spot on behalf of the clients.
- Cash in transit/ cash vans: If needed, Radiant also provides armoured vans for the safe transit of cash from one location to another.
- Network current management: Similar to in-transit service, the firm collects the cash from the clients but instead of delivering it, they deposit the cash into the client’s account.
- Other value-added services: The firm also offers “man-behind-the-counter” services and vaults to retail clients and banking institutions.
- More the 65% of the business is from cash pick-up and delivery services.
Promoters and Holding
The main objective behind the company’s operation is to provide an end-to-end outsourcing service to clients. They have been providing a structured solution for cash management, especially for unorganized small-scale companies.
The promotors and key management are listed below:
- David Devasahayam (Founder, Chairman, and Managing Director)
- Renuka David (Whole-time Director)
- Mr. Ayyavu Palanichamy Vasanthakumar (Nominee Director) is part of the key management.
Is Radiant Cash Management good for Investment?
Even if the world is accepting digitization at a very fast pace, there is still a part of the economy which works on CIC, that is, Cash in Circulation. In India, the CIC has been seeing quite an increasing trend as the nominal GDP rises.
Such market movements are proven growth opportunities for the company and are also paving the road to Radiant Cash Management Services IPO listing.
The CIC market sector has grown by a two-digit CAGR of 10.5% over the last ten years, showing a burgeoning market.
As a result, a company like Radiant Cash Management Services, which is the industry leader, has several prospects for growth and revenue generation.
Radiant Cash Management Financial Statements
|Amount (in INR & Million)|
|Profit After Tax||153.16||382.09||324.33||365.03|
In terms of revenue, the firm may seem to be quite the small player in the market but has been able to successfully hold a steady financial performance, despite the challenges faced by them. Over the past three fiscal years, the revenue has increased at a CAGR of 7.39%
In terms of EBITDA margins, there has not been much of a gain or fall. It stays somewhere close to 21%. For the same three fiscal years, the ROE has been 30.53% for FY20, 25.52% for FY21, and 27.34 for the current FY22.
The debt-to-equity ratio increased from FY20 to FY22 by 0.02. The average EPS is 3.52 and RoNW is 27.8%. Such positive performance made it possible for the company to get the Radiant Cash Management Services IPO live.
|Earnings per Equity Share (in Millions)|
|Basic & Diluted||1.51||3.77||3.20||3.60|
Radiant Cash Management IPO Review
Radiant Cash Management Services files its DRHP with SEBI to raise public funds via IPO. It will be a mix of fresh issues and OFS.
The company’s promotor Col. David Devasahayam will issue 10.13 Mn shares and 20 Mn shares by Ascent Capital Advisors India.
Apart from the details provided in this Radiant Cash Management Services IPO Review, here are some more top reasons listed for participating in the Radiant Cash Management Services IPO:
- The company has a very strong foothold in the industry.
- Has few neck-to-neck peer competitors, thus having a high client retention rate.
- The firm works around a strong distribution network spread across tier-2 and tier-3 cities.
- Has a steady financial position with high expansion and growth opportunities.
- Also, Radiant Cash Management Services has the highest return on net worth when compared to its peers.
Radiant Cash Management IPO Details
Here are few more details you need to know before investing in Radiant Cash Management IPO –
Radiant Cash Management IPO Issue Object
The Radiant Cash Management has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Funding working capital requirements;
- Funding of capital expenditure requirements for the purchase of specially fabricated armoured vans; and
- General corporate purposes.
Radiant Cash Management IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Leading integrated cash logistics player in a consolidating industry present across the value chain of retail cash management
- Pan India presence with a strong network in Tier 2 and Tier 3+ locations and fast-growing end-user segments
- Diversified client base with long-standing relationship and ability to cross-sell value-added services
- Robust Operational Risk Management
- Significantly built up technology to optimise operational profitability
- Steady financial growth
- The experienced management team backed by a reputed institutional investor
Quantitative factors are:
|Basic & Diluted EPS||RONW (%)||NAV (Rs.)|
Radiant Cash Management IPO Lead Managers
Here are the list of Lead managers –
- IIFL Securities Limited
- Motilal Oswal Investment Advisors Limited
- YES Securities (India) Limited
Radiant Cash Management IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
Investor grievance E-mail: firstname.lastname@example.org
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Radiant Cash Management IPO – Other Details
- Statutory Auditor – ASA & Associates LLP, Chartered Accountants
- Legal Counsel to the Company – J. Sagar Associates
- Bankers to the Company – YES Bank and Standard Chartered Bank
Radiant Cash Management IPO Verdict by Stock Brokers
Many shareholders are claiming that the listing is quite expensive at 94 times the face value compared to other listed peers.
However, as every coin has two sides, the Radiant Cash Management Services IPO listing also has two different observations by the stock brokers and marquee investors.
Some are evaluating the market by studying the close competitors. One listed peer gained nearly 27% since its stock debut indicating a positive market trend.
But the other part is sceptical about growth opportunities as the country adopts digitalization and starts using inline payment modes.
Despite the analysis of the experts, do perform your trend analysis before reaching the final decision.
Radiant Cash Management IPO – Conclusion
As the firm works relentlessly to increase its market engagement and practice constant upgradation of technologies to meet the market dynamics, they have established customer relations with some of India’s top NDFCs, insurance firms, retail chains, e-commerce companies, retail petroleum distribution centres, and railways.
Their top 5 clients contribute to approximately 65% of the revenue. Though there are operational risks involved, the 17 years of journey state otherwise.
They have been holding the top market position, proved by their highest EBITDA margins, ROE, and ROCE indicators among their peers.
Thus, the stock is quite an attractive offer, however, before making the final bid, it is advisable to conduct personal research and over-herd behaviour.
Use this Radiant Cash Management Services IPO Review as the initial guide but remember to invest in what you believe will help you reach your financial goals.
To Subscribe to Radiant Cash Management IPO – Open Demat Account Now!
Radiant Cash Management IPO Review FAQs
Check out the FAQs on Radiant Cash Management IPO –
What is the Issue Size of Radiant Cash Management IPO?
The Company is making an initial public offer of 39,185,606 equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Radiant Cash Management IPO?
The price band for this particular IPO ranges between Rs 94 to Rs 99. As far as the face value of the share is of concern, it is Rs.1 per share.
What is the Radiant Cash Management IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Dec 23, 2022, while the closing date is set at Dec 27, 2022.
What is the Radiant Cash Management IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on Dec 30, 2022, refund initiation is on Jan 2, 2023, credit of shares is on Jan 3, 2023, and share listing date is on Jan 4, 2023.
What is the Radiant Cash Management IPO Listing Date?
Shares of this company shall be listed in the exchanges Jan 4, 2023. The date, when the listing would be done, is stagnant on Jan 4, 2023.
Who is the Registrar of Radiant Cash Management IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Radiant Cash Management IPO?
Here are the promoters of this IPO – COL.DAVID DEVASAHAYAM AND DR. RENUKA DAVID. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Radiant Cash Management?
They have obtained the GMP of this IPO and it is Rs.3. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Radiant Cash Management good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Radiant Cash Management Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 382.09, 2021 is 324.33, and 2020 is 365.03. PAT from Jun 2022 is 153.16.
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