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Chennai-based Radiant Cash Management Services (RCMS) has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).
The IPO of the Ascent Capital Advisors-backed firm comprises a fresh issue of ₹60 crore and an offer for sale (OFS) of up to 3.01 crore equity shares by promoters and existing investors.
As per the draft document, promoter Colonel David Devasahayam will sell up to 1.012 crore equity shares while Ascent Capital Advisors India will offload two crore equity shares under the OFS route. Currently, Devasahayam holds a 54.40 per cent stake in the firm while Ascent Capital holds 37.22 per cent stake.
Of the total proceeds, the company is planning to use ₹20 crore for working capital requirements and ₹23.92 crore towards capital expenditure and for general corporate purposes.
Firm’s background
Founded in 2005 by Colonel David Devasahayam, RCMS is an integrated cash logistics player and one of the largest players in the retail cash management (RCM) segment in terms of network locations as of July 2021. In 2015, private equity firm Ascent Capital acquired 37.22 per cent holding in the company.
The company’s operations are split across five verticals – cash pick-up and delivery; network currency management; cash processing; cash vans /cash in transit and other value-added services. It has marquee clients including some of the largest foreign, private and public sector banks.
As of July 31, 2021, Radiant has more than 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). The company has 1,761 employees and 6,056 cash executives on contract.
RCMS’ revenue from operations stood at ₹221.67 crore during the year ended March 2021 with a profit after tax of ₹32.43 crore. IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are the book running lead managers to the issue.
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