Radiant Cash Management Services Ltd, backed by Ascent Capital, has received approval from the market regulator Securities and Exchange Board of India (Sebi) to raise funds through its initial public offering (IPO).
The Chennai-based firm had filed its draft red herring prospectus (DRHP) in October 2021. The issue comprises primary share issuance worth Rs 60 crore, and an offer-for-sale (OFS) from existing investors of up to 30.13 million equity shares.
The OFS comprises issue of 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%.
Founded in 2005 by CMD Col. David Devasahayam, Radiant Cash Management Services operates its business across five verticals -- cash pick-up and delivery; network currency management; cash processing; cash vans /cash in transit and other value-added services.
In 2015, private equity (PE) firm Ascent Capital invested Rs 80 crore in the company to acquire 37.2% stake.
The company’s clients include some of the largest private and public sector banks operating in India. It also provides services to foreign lenders.
As of 31July, 2021, Radiant has more than 42,420 touch points across 12,150 pin codes, with 1,761 employees and 6,056 cash executives on contract.
Its operating revenue stood at Rs 221.67 crore in FY21, as against Rs 248.3 crore in FY20, while its net profit declined from Rs 36.5 crore in FY20 to Rs 32.43 crore in FY21.
The proceeds from the issue, worth Rs 20 crore, will be used for funding working capital requirements; Rs 23.92 crore will be used for funding of capital expenditure, and the remaining will be used for general corporate purposes.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are the book running lead managers to the issue.
The company is in line to join its peers CMS Info Systems Ltd that got listed last month and AGS Transact, whose IPO bidding window will open tomorrow.
