Radiant Cash Management Services file draft papers for IPO

Radiant Cash Management Services has filed the preliminary papers with markets regulator Sebi for an initial share sale that includes fresh issue of stocks worth up to Rs 60 crore.

The Chennai-based company, an integrated cash logistics player with leading presence in retail cash management segment, will mainly utilise the fresh issue proceeds from the initial public offering (IPO) towards funding working capital and capital expenditure requirements.

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The IPO comprises fresh issue of shares worth up to Rs 60 crore and an offer for sale (OFS) of 3 crore shares by promoter Col. David Devasahayam and private equity firm Ascent Capital Advisors India, according to the draft red herring prospectus (DRHP).

In 2015, Ascent Capital had acquired 37.2 per cent stake in the company.

Out of the fresh issue proceeds, Rs 20 crore will be used for funding working capital requirements and Rs 23.92 crore for capital expenditure requirements for purchase of specially fabricated armoured vans.

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

At least four companies have filed draft papers for IPOs in the last two weeks. With the stock market witnessing a bull run, many companies are tapping the IPO route to raise funds.

In the first nine months of this year, as many as 72 companies have come out with their IPOs.