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Radiant Cash Management IPO

Radiant Cash Management IPO

The IPO done via fresh issue of shares is worth Rs.60 crores and an offer for sale of up to 30.13 million shares by...

  • Status: Closed
  • RHP:
  • ₹ 14,100 / 150 shares

    Minimum Investment

IPO Details

  • Open Date

    23 Dec 2022

  • Close Date

    27 Dec 2022

  • IPO Price Range

    ₹ 94 to ₹99

  • IPO Size

    ₹ 387.94 Cr

  • Listing Exchange

    BSE, NSE

  • Listing Date

    04 Jan 2023

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Timeline Subscription Status Objective Financials SWOT FAQ Contacts

IPO Timeline

Last Updated: 28 December 2022 12:34 AM by 5Paisa

Radiant Cash Management Services Ltd IPO worth 387.94 crores open on Dec 23, 2022, and closes on Dec 27, 2022. The IPO comprise of fresh issue of shares is worth Rs.60 crores and an offer for sale of up to Rs. 327.94 crores by its existing promoters and shareholders.
The price band is fixed at Rs. 94 – Rs. 99 per share while the lot size is fixed at 150 shares per lot. The issue will be listed on 4th January while the shares will be allotted on 30th December.
IIFL Securities, Motilal Oswal and Yes Securities are the lead managers to the issue.

Objective of Radiant Cash Management Services IPO

The proceeds from the issue will be used for the following:

1. Rs.20 crores will be used for funding working capital requirements which in August 2021, the outstanding amount stood at Rs.21.42 crores for fund-based and non-fund based stood at Rs.21.42 crore and Rs.21.02 crore respectively.
2. Rs.23.92 crore will be used for buying 220 specially fabricated armoured vans. As of July 2021, it has utilised a fleet of 694 fabricated armoured vans.
 

Radiant Cash Management IPO Video

The firm is an integrated cash logistics player in retail cash management (RCM) segment of the cash management services industry in India and is one of the largest players in the RCM segment in terms of network locations or touchpoints served.

The firm provides services across 12,150 pin codes in India covering all districts (other than Lakshadweep) with about 42,420 touch points serving more than 4,700 locations.
The firm’s marquee clients include some of the largest foreign, private and public sector banks, and the end user of the services include some of the largest e-commerce companies, retail chains, NBFCs, insurance firms, ecommerce logistics players, railways and retail petroleum distribution outlets.

The business operates across five verticals: 
1. cash pick-up and delivery
2. network currency management (also known as cash burial in industry parlance)
3. cash processing
4. cash vans /cash in transit
5. other value added services

The integrated services and product offerings allows to shift business mix towards providing more value-added services, more reliable service through a single point of accountability, improved advance planning of routes, faster reconciliation, as well as increased client loyalty and reduced client turnover. Due to these, the company enjoys leading EBITDA margin, ROCE and ROE amongst organised players in the cash management services segment in 2020. EBITDA margin for Fiscal 2021 stood at 22.20%, FY 2020 stood at 22.15% and FY 2019 stood at 18.46%.
 

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY22 FY21 FY20
Revenue 286.04 221.67 248.28
EBITDA 59.49 49.76 55.77
PAT 38.21 32.43 36.50
Particulars (in Rs. Crores) FY22 FY21 FY20
Total Assets 190.57 162.14 157.62
Share Capital 10.13 1.03 1.11
Total Borrowings 26.75 11.05 21.13
Particulars (in Rs. Crores) FY22 FY21 FY20
Net cash generated from / (used in) operating activities 3.1 2.8 4.1
Net cash from / (used in) investing activities -0.2 2.6 0.6
Net cash flow from / (used in) financing activities -1.2 -3.7 -2.3
Net increase (decrease) in cash and cash equivalents 1.6 1.6 2.4

Peer Comparison

Name of the Company Total Revenue  Basic EPS NAV PE RoNW%
Radiant Cash Management 286.97 3.77 13.8 NA 27.34%
SIS Limited 10,111.76 22.09 140.87 17.62 15.71%
CMS Info System 1,597.58 15.07 82.02 21.79 17.84%


Strengths

•    Leading integrated cash logistics player in a consolidating industry present across the value chain of retail cash management.
•    Pan India presence with 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.

Risks

•    The business is highly dependent on the banking sector in India to generate revenues, and any changes within Indian banks that affects their utilisation of and demand for cash management services could affects the business and its operations.
•    If one or more of the key customers were to suffer a deterioration in their business, cease doing business or substantially reduce its dealings with the, the revenues could decline.
•    A decrease in the availability or use of cash as the predominant mode of payment in India could have an adverse effect on the business as cashless payments system gains traction.
•    The currency demonetisation measures had a significant impact on the cash circulation in India and there is uncertainty whether similar unanticipated measures could be adopted, hence the future remains unpredictable.
•    Given the large volumes of cash handled, the firm are exposed to various operational risks, including armed robbery, endcustomer or third-party fraud, theft or embezzlement by employees or, reporting errors, both deliberate and inadvertent, and failure to meet specific requirements under applicable service agreements for which we may incur penalty charges.

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FAQs

The price band of the IPO is set at Rs. 94 – Rs. 99 per share

The Radiant Cash Management IPO opens on 23rd December, and the closes on 27th December.

The IPO comprise of fresh issue of shares is worth Rs.60 crores and an offer for sale of up to Rs. 327.94 crores by its existing promoters and shareholders.

The allotment of Radiant Cash Management IPO date is set for 30th December

The Radiant Cash Management Services IPO issue will be listed on 4th January.

The Radiant Cash Management IPO lot size is 150 shares. A retail-individual investor can apply for up to 13 lots (1950 shares or ₹193,050).

The net proceeds from the issue will be used for: 

1.    Rs.20 crores will be used for funding working capital requirements which in August 2021, the outstanding amount stood at Rs.21.42 crores for fund-based and non-fund based stood at Rs.21.42 crore and Rs.21.02 crore respectively.
2.    Rs.23.92 crore will be used for buying 220 specially fabricated armoured vans. As of July 2021, it has utilised a fleet of 694 fabricated armoured vans.
 

To apply for the IPO, follow the steps given below

•    Login to your 5paisa account and select the issue in the current IPO section
•    Enter the number of lots and price at which you wish to apply for
•    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
•    You will receive a mandate notification to block funds in your UPI app

Radiant Cash Management is promoted by Col. David Devasahayam and Dr Renuka David.

IIFL Securities, Motilal Oswal and Yes Securities are the book running lead managers to the issue.