Radiant Cash Management IPO

Radiant Cash Management IPO

Company Profile

Founded in March 2005, Radiant Cash Management Services is engaged as the cash logistics player with a leading presence in the retail cash management (“RCM”) segment of the cash management services industry in India.

Radiant Cash Management Services is one of the largest players in the RCM segment in terms of network locations or touchpoints served and revenue or profitability as of Fiscal 2021. The company provides services across 12,150 pin codes in India covering all districts (other than Lakshadweep) with more than 42,420 touchpoints serving more than 4,700 locations as of July 31, 2021. 
Business Information
I) Radiant Cash Management Services' marquee clients include some of the largest foreign, private, and public sector banks, and the end-user of our services include some of the largest e-commerce companies, retail chains, NBFCs, insurance firms, e-commerce logistics players, railways, and retail petroleum distribution outlets.

II) The business operates across five verticals: 

1. cash pick-up and delivery
2. network currency management (also known as cash burial in industry parlance)
3. cash processing
4. cash vans /cash in transit
5. other value-added services

III) The company has integrated services and product offerings that allow it to shift the business mix towards providing more value-added services, more reliable service through a single point of accountability, improved advance planning of routes, faster reconciliation, as well as increased client loyalty and reduced client turnover. 

Facts about the Company
  1. Radiant Cash Management enjoys leading EBITDA margin, ROCE, and ROE amongst organised players in the cash management services segment in 2020.
  2. Different groups of companies are run under RCM such as Radiant Business Solution, Radiant Medical Services, Radiant integrity Techno Solution, Radiant Protection Forces, and Renuka Management Services. 
  3. EBITDA margin for Fiscal 2021 stood at 22.20%, FY 2020 stood at 22.15%, and FY 2019 stood at 18.46%.
  4. If we annualize FY23 earnings and attribute it to fully diluted post-IPO paid-up equity capital, then the asking price is at a P/E of around 17.34. Thus the issue appears fully priced. 
Points to note before investing in the IPO
  • RCMSL enjoys a lion's market share for RCM in Ties-II and Tier-III cities and sees vast opportunities. 
  • The company caters to a broad set of outsourcing requirements pertaining to cash management services for banks, financial institutions, and organized retail and e-commerce companies in India. 
  • Company has key clients such as Axis Bank Limited, Deutsche Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Standard Chartered Bank, Yes Bank Limited, and State Bank of India.
Objective of the IPO

From the net proceeds of the fresh issue, RCMSL will spend Rs. 20.00 cr. for working capital, Rs. 25.48 cr. As well as for the funding working capital requirements, for the capital expenditure requirements for the purchase of specially fabricated armoured vans, and for general corporate purposes.

Opening Date
Dec 23, 2022 
Closing Date
Dec 27, 2022
Issue type
Book Built Issue IPO
Face Value
₹1 per share
IPO Price
₹94  to ₹99 per share
Lot Size
Issue Size
₹387.94 Cr
Listing At

Allotment, Listing & Refund Details

Finalization of Basis of Allotment
Dec 30, 2022
Initiation of Refunds
Jan 2, 2023
Credit of Equity Shares
Jan 3, 2023
Listing Date
Jan 4, 2023

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