Radiant Cash Management Systems IPO lists at 9.6% premium

Radiant Cash Management Systems IPO had a much better than expected listing on 04th January 2023, listing at a healthy premium of 9.6%, and closing the day well above the IPO price and the listing price. Remember, this was not a great day for listing a stock especially since the Nifty fell 189 points and the Sensex 637 points on Wednesday. While the stock did show some bouts of volatility during the day, it closed more than 13% below the issue price on the first day of trading on the NSE. It also closed above the listing price. What is more ironical is that the issue was grossly undersubscribed getting just about 0.53X or 53% overall subscription with only the QIB subscription just about scraping through at 1.01X. The listing was expected to be moderate, but in reality the listing day performance of Radiant Cash Management Systems Ltd was substantially better than the wildest imagination. Here is the listing story on 04th January 2023.

Radiant Cash Management Systems IPO price was fixed at the lower end of the IPO price band at Rs.94 per share which was not at all surprising considering the disappointing 0.53X or 53% overall subscription only the QIB portion just about managing to get subscribed one time. In addition, the retail portion had got just 21% subscription in the IPO while the HNI portion was subscribed 66%. The price band for the IPO was Rs. 94 to Rs. 99. On 04th January 2023, the stock of Radiant Cash Management Systems Ltd listed on the NSE at a price of Rs. 103, a healthy premium of 9.57% on the IPO issue price of Rs. 94. On the BSE also, the stock listed at Rs. 99.30, a premium 5.64% to the IPO price.

On the NSE, Radiant Cash Management Systems Ltd closed on 04th January 2023 at a price of Rs. 106.50. That is a first day closing premium of 13.30% on the issue price of Rs. 94 and a premium of 3.40% on the listing price of Rs. 103. In fact, the listing price turned out to be base on which the performance of the stock for the day was built. On the BSE, the stock closed at Rs. 104.70. That represents a first day closing premium of 11.38% above the issue price and also a premium of 5.44% above the listing price on the stock exchange. On both the exchanges, the stock listed well above the IPO issue price and closed Day-1 well above the listing price and the IPO price too. What is commendable was that the stock managed this strong listing day performance despite a disappointing subscription and a rather bearish day at the stock markets.

On Day-1 of listing, Radiant Cash Management Systems Ltd touched a high of Rs. 116.80 on the NSE and a low of Rs. 98.10. The premium sustained through the day. In fact, if you look at the range of prices, the low price for the trading day was well above the IPO price, which showed the strong footing for the stock. This performance was maintained on the listing day, despite the below average subscription data and the heavy selling on the listing day in the markets. On Day-1 of listing, the Radiant Cash Management Systems Ltd stock traded a total of 189.28 lakh shares on NSE amounting to value of Rs. 199.83 crore on the NSE. The order book during the day showed a lot of aggressive trading but the buy orders far exceeded the sell orders at any point of time. Despite some unwinding at higher levels, the stock held on pretty smartly.

On Day-1 of listing, Radiant Cash Management Systems Ltd touched a high of Rs. 116.70 on the BSE and a low of Rs. 98.00. The premium sustained through the day. In fact, if you look at the range of prices, the low price for the trading day was well above the IPO price, which showed the strong footing for the stock. This performance was maintained on the listing day, despite the below average subscription data and the heavy selling on the listing day in the markets. On Day-1 of listing, the Radiant Cash Management Systems Ltd stock traded a total of 34.34 lakh shares on BSE amounting to value of Rs. 36.09 crore on the BSE. The order book during the day showed a lot of aggressive trading but the buy orders far exceeded the sell orders at any point of time. Despite some unwinding at higher levels, the stock held on pretty smartly in trade on the BSE.

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of buying pressure with the buy orders far exceeding the sell orders at any point of time. That made it a buy on dips stock through the day. However, this was despite the aggressive selling pressure in the markets on Wednesday. On the NSE, out of the total 189.28 lakh shares traded during the first day of trading, the deliverable quantity represented 41.61 lakh shares or a deliverable percentage of 21.98% on the NSE. That shows very low delivery selling or buying. Even on the BSE, out of the total 34.34 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 17.30 lakh shares representing total deliverable percentage of 50.37%. Contrary to popular trends, the delivery percentage on NSE was much lower than normal IPOs while the delivery percentage on BSE was much higher than average.

At the close of Day-1 of listing, Radiant Cash Management Systems Ltd had a market capitalization of Rs. 1,117.23 crore with free-float market cap of Rs. 357.51 crore.