Introduction
Before we bid adieu to 2022, we still have a chance to explore IPO investment opportunities as a few companies launch their IPO subscriptions. The latest offering is from Radiant Cash Management Services Limited IPO that will open for subscription on 23rd December 2022 and will close on 27th December 2022.
Radiant Cash Management Services Ltd is a leading name in India’s retail cash management services segment.
Here are all the essential details of Radiant Cash Management Services Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: Top 5 stocks in financial services and sector overview
IPO Details
The key details of the Radiant Cash Management Services Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 23rd December 2022 |
| IPO Closing Date | 27th December 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 1 per share |
| IPO Price Band | Rs. 94 – Rs. 99 per share |
| IPO Size | Rs. 387 crores |
| Offer For Sale | Rs. 327 crores |
| Fresh Issue | Rs. 60 crores |
- IPO Dates
The important dates for the Radiant Cash Management Services Limited IPO are highlighted below:
| Event | Date |
| Opening date | 23rd December 2022 |
| Closing Date | 27th December 2022 |
| Allotment date | 30th December 2022 |
| Refund Date | 2nd January 2023 |
| Share Credit Date | 3rd January 2023 |
| Listing Date | 4th January 2023 |
- IPO Lot Sizes
Investors can subscribe to the shares of Radiant Cash Management Services Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lot Maximum – 13 lots |
| Shares | Minimum – 150 Maximum – 1950 |
| Investment amount | Minimum – Rs. 14,850 Maximum – Rs. 1,93,050 |
- IPO Reservation
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Radiant Cash Management Services Limited IPO Objectives
The key objectives of the IPO are stated below:
- The prime objective of the IPO is to meet working capital needs.
- The proceeds will also be utilised for capital expenditure toward purchasing specially fabricated armoured vans.
- The balance proceeds will be used for general corporate purposes.
Top things to know about Radiant Cash Management Services Limited IPO
Radiant Cash Management Services Limited was incorporated in 2005 and has become a market leader in providing retail cash management services for public, private, and foreign banks as well as financial institutions, organised retail, and e-commerce companies in India. The services offered by this company collection and delivery of cash on behalf of their clients.
The company has multiple objectives that include:
- The company aims to provide the following services to banks, individuals, and commercial and government institutions.
- Cash/Cheques/DDs Pickup and Delivery Services
- Cash Processing (for example sorting for good and soiled currencies, notes, and coins of various denominations
- Overnight vaulting services for bulk cash and ATM cards
- Cassettes & important documents
- ATM Services
- Handling of PIN mailers/drafts/cheque book delivery
- Providing strong rooms installed as per RBI guidelines.
- Their company objectives related to cash management include:
- Management of electronic, online, and mobile financial and cash transactions
- Product management
- Development of intellectual property in cash management services.
- The company also aims to carry on cash n=management business under Business Process Outsourcing.
Radiant Cash Management Services Limited has become one of the biggest names in terms of network locations and touchpoints served by them as of March 2022. They have an extensive network of providing services across 13,044 locations across the country (except Lakshadweep). Their services are spread over 5,388 locations as of July 2022 with access to over 55,513 touchpoints. The company’s marquee clientele includes top names in the banking sector like 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.
Financials of the company
Radiant Cash Management Services Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 190 | 286 | 38 | 3.77 | 3.77 | 27.34% |
| Mar-2021 | 162 | 221 | 32 | 3.20 | 3.20 | 25.52% |
| Mar-2020 | 157 | 248 | 36 | 3.60 | 3.60 | 30.53% |
(Source: RHP)
Strengths of the company
Some of the key strengths of Radiant Cash Management Services Limited that investors can take note of are:
| Category | Details |
| Business model | The company has been a market leader in the cash management services sector with presence across its value chain.They have a pan India presence and a growing network in Tier-2 and Tier-3 locations along with fast-growing end-user segments.The company enjoys a diversified client base with strong relationships with marquee investorsThey have optimised their operational capabilities for efficient risk management through technology and maximise their operational profits |
| Promoters and Senior management | They have a highly experienced management team along with the backing of an institutional investor. |
Risks of investment
Here are some of the risks that investors of Radiant Cash Management Services Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company faces the risk of revenue concentration as a significant portion of the revenue is from limited customers. The company is dependent on the banking sector directly for its business and profitability.They also face the risk of lack of availability or the preferred use of cash payment mode in the country.The company may have to incur additional expenses and difficulties in executing operations in various parts of the country with a lack of proper infrastructure facilities. |
| Competition | The company operated in a highly competitive industry |
| Litigations | The company is also facing outstanding litigations |
What is the Grey Market Premium (GMP) of Radiant Cash Management Services Limited IPO?
As of December 20th, 2022, the grey market premium for the shares of Radiant Cash Management Services Limited is approximately Rs. 2 to Rs. 5 as per market observers.
Should you apply for Radiant Cash Management Services Limited IPO?
Radiant Cash Management Services Limited has a high PE ratio as compared to its peer group and a higher valuation too. Investors must therefore thoroughly explore this investment opportunity before applying for the IPO.
How to apply for Radiant Cash Management Services Limited IPO?
Investors can invest in this IPO through the Fisdom app.
Radiant Cash Management Services Limited IPO FAQs
The core operations of the company is cash pick up and delivery which constitutes about 67% of their total revenues.
The EPS of the company is Rs. 3.77 per share while its listed peers SIS Limited and CMS Info System Limited have EPS of Rs. 22.09 and Rs. 15.07 respectively.
The company has about 55,513 touchpoints across the country and approximately 86% of these are located in Tier 2 and Tier 3 locations.
The company will use approximately Rs. 20 crores towards working capital needs, Rs. 26 crores for the purchase of specially fabricated armoured vans, and the balance of Rs. 14 crores for general corporate purposes.
The Registrar for Radiant Cash Management Services Limited is LInk Intime India Private Limited.
