Cash logistics player Radiant Cash Management Services Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India to raise funds via an initial public offering.
The IPO consists of a fresh issue of Rs 60 crore and an offer for sale (OFS) of up to 30.13 million shares by promoters and shareholders.
The OFS comprises up to 10.13 million shares by Col David Devasahayam and up to 20 million shares by Ascent Capital Advisors India. Currently, Devasahayam holds 54.40% stake in the firm while Ascent Capital has 37.221%.
The proceeds from the issue worth Rs 20 crore will be used for funding working capital requirements. As of August 2021, the outstanding amounts for working capital under fund-based and non fund-based were Rs 21.42 crore and Rs 21.02 crore, respectively.
The firm handles cash volume of approximately Rs 400 crore on a daily basis which increases sometimes to around Rs 1,000 crore during long weekends. Augmenting its working capital funding will enable it to scale up its capacity to handle higher daily cash volumes.
The firm also plans to use Rs 23.92 crore for buying 220 specially fabricated armoured vans. As of July 2021, it has utilised a fleet of 694 fabricated armoured vans.
IIFL Securities, Motilal Oswal and Yes Securities are the lead managers to the issue.
The firm is a cash logistics player with presence 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 touch points served as of 31 July.
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 as of 31 July.
For the four months ended July 2021 and fiscal year 2021, its total annual currency movement and the total value of the currency passing through its RCM operation amounted to Rs 36,839 crore and Rs 1.29 lakh crore, respectively.
For fiscal year 2021, its revenue from operations was Rs 221.67 crore against Rs 248.298 crore a year ago. Net profit for the period stood at Rs 32.43 crore versus Rs 36.50 crore last year. As of August its total borrowings were Rs 23.22 crore.