Radiant Cash Management Services share sale via initial public offering (IPO) will open on Friday, December 23 and close on Tuesday, December 27. The company is planning to raise Rs 388 crore from the IPO and consists of an offer for sale worth Rs 328 crore by its promoters and shareholders and fresh issue of Rs 60 crore. The company has reserved 50 per cent of shares in the IPO for qualified institutional buyers (QIBs), which consist of financial institutions like banks, mutual funds and insurance companies. 15 per cent of shares in the IPO are reserved for non-institutional investors and 35 per cent for retail individual investors.
Radiant Cash Management has fixed price band of Rs 94-99 per share in the IPO and a retail investor can bid for minimum one lot of 150 shares up to maximum of 13 lots. One lot of Radiant Cash Management shares in the IPO will cost Rs 14,850 at the upper end of the price band.
The IPO comprises fresh issue of shares worth up to Rs 60 crore and an offer for sale (OFS) of 33,125,000 shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.
In 2015, Ascent Capital had acquired 37.2 per cent stake in the company.
Proceeds from the fresh issue component will be used for funding working capital requirements as well as capital expenditure requirements for purchase of specially fabricated armoured vans, the Chennai-based company said.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are the book running lead managers to the issue.
Radiant Cash Management is the market leader in retail cash management services for banks, financial institutions, and organized retail and e-commerce companies in India. The company offers a range of services under this segment consisting of collection and delivery of cash on behalf of our clients from the end user.
The company's management is supported by a qualified and motivated pool of about 2,012 employees (as of July 31, 2022).
Radiant Cash Management Services provide 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.
