Radiant Cash Management Services IPO: Ascent Capital-backed company get SEBI nod; here are top 6 things to know about issue

Ascent Capital-backed Radiant Cash Management Services Ltd (RCMS) has received approval from the capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through its initial public offering (IPO).

RCMS is an integrated cash logistics player with presence in retail cash management (RCM) segment of the cash management services industry in India.

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The Chennai-based firm intends to issue new shares worth up to Rs 60 cr while an Offer For Sale (OFS) with the existing shareholders likely to sell up to 30.13 million equity shares.

The OFS comprises issue of up to 10.13 million shares by Colnel David Devasahayam and up to 20 million shares by Ascent Capital Advisors India according to a statement released by the company.

Radiant Cash Management Services IPO- Here are top 5 things to know about this company:  

1. Fresh share issue is worth Rs 60 cr while OFS comprises of share sale of up to 30.13 million equity shares.
2. Colnel David Devasahayam likely to offload up to 10.13 million shares while Ascent Capital Advisors India could shed up to 20 million shares in the OFS.
3. In 2015, Private equity firm Ascent Capital, a leading PE fund acquired 37.2 per cent holding in the company.
4. Proceeds worth Rs 20 crore to be utilised for funding working capital requirements and Rs 23.92 crore towards for funding of capital expenditure and for general corporate purposes.
5. RCMS claims to be one of the largest cash management services company in India in terms of network locations or touchpoints served as of July 2021. As of July 31, 2021, Radiant boasts of over 42,420 touch points across 12,150 pin codes covering tier 2 and tier 3+ towns and cities across all states and union territories in India (other than Lakshadweep). It has 1,761 employees and 6,056 cash executives on contract.
6. Radiant Cash Management Services’ revenue from operations stood at Rs 221.67 crore during the year ended March 2021, while its profit after tax during the year stood at Rs 32.43 crore.

About the company:

The company was founded in 2005 by Colnel Devasahayam who is also the Chairman and Managing Director (CMD) of the company.

It operates its business across five verticals, namely cash pick-up and delivery; network currency management (also known as cash burial in industry parlance); cash processing; cash vans /cash in transit and other value added services.

The company’s clients include some of the largest banks operating in India. These include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, State Bank of India, and Yes Bank. It also provides services to foreign lenders Citibank, Deutsche Bank, Standard Chartered Bank, and HSBC.

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