Chennai-headquartered Radiant Cash Management Services Ltd, a leading player in retail cash management services for banks, financial institutions, and organised retail and e-commerce companies in India, will open its three-day initial public offering (IPO) on December 23. The IPO closes on December 27. The company has fixed a price band of ₹94-99 per share for its ₹388-crore public offering.

The public issue comprises a fresh issue of up to ₹60 crore and an offer for sale (OFS) of up to 33,125,00 equity shares by existing shareholders that include promoter David Devasahayam and private equity firm Ascent Capital Advisors. Investors can bid for a minimum of 150 equity shares and in multiples of 150 shares thereafter.

Proceeds from the issue will be used for funding working capital requirements as well as capital expenditure requirements (about ₹25 crore) for the purchase of 220 specially-fabricated armoured vans.

The ₹287-crore company has a market share of about 40 per cent in the cash transportation segment of the retail cash management market. It moves ₹400-500 crore worth of cash per day on an average. About 97 per cent of its revenues come from banks, while the rest is from end-consumers. Its key clients include almost all top private and foreign banks and the State Bank of India.

The company sees huge opportunities for growth, particularly in Tier-II and Tier-III cities, supported by its proven cash logistics services.

The retail cash management market is estimated at ₹680 crore in FY2021 and is projected to reach a market size of ₹2,040 crore by FY2027, growing at a CAGR of 20.3 per cent. The growth in the organised retail sector as well as the corresponding outsourcing potential is expected to be prime factors for the development of the RCM market in India, according to a report by Frost & Sullivan.

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