Radiant Cash Management Services files draft papers to raise funds through IPO

IPO involves a new issue of shares ₹60 crore and offer for sale of 30.13 million shares by its existing promoters and shareholders.

The OFS includes issue of 10.13 million shares by Col. David Devasahyam and up to 20 million shares by Ascent Capital Advisors India. Presently, Devasahyam holds 54.40% stake in the firm while Ascent Capital holds 37.221% stake in the firm.

proceeds from value issue ₹20 crore will be used for financing working capital requirements. As of August 2021, the amount outstanding for working capital under fund-based and non-fund based was ₹21.42 crore and ₹21.02 crores respectively.

The firm handles cash amounts of approx. ₹400 crores on daily basis which sometimes increases to approx. ₹1000 crores in the long weekend. Increasing its working capital fund will enable it to enhance its ability to handle higher daily cash volumes.

The firm also plans to use ₹23.92 crore to buy 220 specially made armored vans. As of July 2021, it has in use a fleet of 694 fabricated armored vans.

IIFL Securities, Motilal Oswal and Yes Securities are the lead managers of the issue.

The firm is an integrated cash logistics player with a presence in the Retail Cash Management (RCM) segment of the cash management services industry in India and one of the largest players in the RCM segment in terms of network location or touchpoints as on 31st July.

The firm provides services in 12,150 pin codes covering all districts (other than Lakshadweep) in India, with approximately 42,420 touch points serving over 4,700 locations as of 31 July.

For the four months ended July 2021 and the fiscal year 2021, what was its total annual currency circulation or the total value of the currency passing through its RCM operations? ₹368.39 billion and ₹1.29 trillion respectively.

For fiscal year 2021, its revenue from operations was ₹221.67 crore against ₹248.298 crore a year ago. net profit for the period ₹32.43 crore vs. ₹36.50 crore last year. As of August, its total borrowings was ₹23.22 crores.