Radiant Cash Management Services files draft papers with SEBI

radiant cash management services ipo

Chennai-based Radiant Cash Management Services Ltd will be filing its Draft Red Herring Prospectus with SEBI to roll out its initial public offering (IPO).

The company plans to issue up to Rs 60 crore worth of new shares, while existing shareholders may sell up to 30.13 million equity shares.

The OFS includes an issue of up to 10.13 million shares by Col David Devasahayam and up to 20 million shares by Ascent Capital Advisors India.

The plans to use the proceeds from the issue worth Rs 20 for financing working capital requirements, Rs 23.92 crore towards the funding of capital expenditure and for general corporate purposes.

In 2015, private equity firm Ascent Capital, a PE fund, secured a 37.2 percent holding in the company.

Established in 2005 by Col David Devasahayam, Radiant Cash Management Services (RCMS) is an integrated cash logistics company with a strong presence in the retail cash management segment of the cash management services industry in the country and one of the largest players in the RCM segment in terms of network locations or touchpoints served as of July 2021.

The company’s marquee clients include some of the largest foreign, private, and public sector banks, and the end-users of its services include some of the leading e-commerce companies, retail chains, NBFCs, insurance firms, e-commerce logistics players, railways, and retail petroleum distribution outlets.

As of July 31, 2021, Radiant has over 42,420 touchpoints across 12,150 pin codes in Tier-II and III towns and cities across all states and union territories in India (except Lakshadweep). The company is run by a team of highly professional ex-army senior management with 1,761 employees and 6,056 cash executives on contract.

Radiant Cash Management Services’ revenue from operations was at Rs 221.67 crore during the year ended March 2021, while its profit after tax during the year was at Rs 32.43 crore.

IIFL Securities Limited, Motilal Oswal Investment Advisors Limited, and Yes Securities (India) Limited have been appointed as the book running lead managers to the issue.

Radiant Cash Management Services has successfully established a strong foothold in the market. I’m sure the upcoming IPO will add to its success. My best wishes to the team of Radiant Cash Management Services.

Shishir Gupta, Founder and CEO, StartupLanes

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