Radiant Cash Management surges on market debut as shares list at premium


Shares of Radiant Cash Management Services Ltd made a positive market debut on Wednesday with the stock listing at 104 a piece on the NSE, a premium of over 10% as compared to its IPO issue price of 94 per share. On the BSE, Radiant Cash Management shares started trading at 99 a piece.

The initial public offer (IPO) of Radiant Cash Management Services was subscribed 53% on the last day of subscription on Tuesday, December 27, 2022. The initial share-sale received bids for 1,45,98,150 shares against 2,74,29,925 shares on offer. The issue, which opened on December 23, 2022, had a price band of 94 to 99 a share for its 388-crore public offer.

The category meant for Qualified Institutional Buyers (QIBs) was fully subscribed, while non-institutional investors portion received 66% subscription and Retail Individual Investors (RIIs) 20%.

Radiant Cash Management IPO had a fresh issue component reduced from 60 crore to 54 crore and an offer for sale (OFS) reduced from 33,125,000 shares to 21,222,431 equity shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.

While Allotment to Anchor Investors was done at 99 per equity share, people who have applied excluding anchor will be allotted at the lower price band i.e., 94 per share.

Proceeds from the fresh issue component will be used for funding working capital requirements as well as capital expenditure requirements for purchase of specially fabricated armoured vans.

Incorporated in 2005, Radiant Cash Management Services Limited is the market leader in retail cash management services for banks, financial institutions, and organized retail and e-commerce companies in India.

The company offers a range of services under this segment consisting of collection and delivery of cash on behalf of its clients from the end user. In 2015, Ascent Capital had acquired 37.2% stake in the company.

IIFL Securities, Motilal Oswal Investment Advisors and YES Securities were the managers to the offer whereas Link In Time was the registrar of the share sale.

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