Radiant Cash Management Services shares saw a premium listing on the bourses on Wednesday after the IPO closed last week. The shares opened at a 9.5% premium amid a negative domestic market, listing at Rs 103 on the NSE, as compared to the public issue price of Rs 94. The shares to a low of Rs 99 minutes after debut, but they were last trading at Rs 102 on the National Stock Exchange. The market had predicted a muted listing since the IPO received cold shoulder from investors. Radiant Cash Management GMP (grey market premium) fell ahead of listing.
Radiant Cash Management Services’ IPO opened for subscription for retail investors on 23 December, and concluded on 27 December. The price band of the issue was set at Rs 94-99 per share. The integrated cash logistics player’s IPO has been booked 0.53 times. Qualified institutional buyers (QIBs) oversubscribed for their reserved portion, bidding 1.01 times. Retail investors, on the other hand, bid 0.21 times for the 13,714,963 shares reserved for them. The NII portion garnered 0.66x bids. Note that 50% of the IPO was reserved for QIBs, while NIIs could bid for 15% and retail investors for the remaining 35%.
The company reduced the total size of the IPO from Rs 387.94 crore to Rs 256.66 crore. The fresh Issue component has been reduced from Rs 60 crore to Rs 54 crore, and OFS reduced from 33,125,000 shares to 21,222,431 equity Shares i.e from 327.94 crore to 202.09 crore. Promotor Selling Shareholder OFS reduced has been reduced to 64,86,856 shares aggregating to Rs 61.39 crore, and Investor Selling Shareholder has been reduced to 1,47,35,575 shares aggregating to Rs 140.70 crore. While Allotment to Anchor Investors was done at Rs 99 per equity share, people who have applied excluding anchor will be allotted at the lower price band of Rs 94 per share.
Ahead of the IPO, the company raised Rs 116.4 crore from anchor investors. Choice Broking had assigned ‘subscribe with caution’ on the IPO, while Reliance Securities, Ventura Securities, and Marwadi Financial Services had ‘subscribe’ ratings on the issue. Of the proceeds from the IPO, Rs 20 crore will be used to fund the working capital requirements. Another 25.5 crore will be used for funding capex to buy specially fabricated armoured vans.
The integrated cash logistics player Radiant Cash has a leading presence in the retail cash management segment. The company runs the business in five different areas — cash pick-up and delivery, network currency management, cash processing, cash vans or cash in transit, and value-added services. The company’s clientele includes Deutsche Bank, Standard Chartered, and ICICI Bank. The company gets 67% revenue from fixed-point cash pick-up and 24% from network currency management.