Radiant Cash Management IPO Details.

radiant cash management ipo

radiant cash management ipo

The Initial Public Offering (IPO) of Radiant Cash Management Services is open for public subscription for three days from Friday 23rd December to Tuesday 27th December 2022. The initial share sale of Rs 388 crore is priced at Rs 94 to Rs 99 per share.

As per BSE data, the issue was subscribed 0.02x and retail category 0.04x on the first day.
Radiant Cash Management IPO comprises a fresh issue of shares for an amount of Rs 60 crore and an offer (OFS) of 33,125,000. Shares held by David Devasahayam, promoter of private equity firm Ascent Capital Advisors India.

The growth of organized retail and the associated outsourcing potential will drive the Retail Cash Management (RCM) market. Radiant may also cross-sell value-added services such as network currency management or cash processing services. Reliance Securities said Radiant is valued at 27.8x FY22 earnings, 17.2x EBITDA and 3.5x EV/Sales.

The brokerage recommends that you own the issue due to its strong financial record of the largest integrated cash logistics company with healthy double digit operating margin (EBITDA margin > 20%), and double digit return ratio (RoE at 27.3%). Subscribe. Strong presence in India, key customers, and focus on technology improvements and attractive valuations.

The Chennai-based company said the proceeds from the new issue component will be used to fund working capital requirements and capital expenditure requirements for procurement of specially built armored vehicles.

“Radiant, an integrated cash logistics company, is a leading player in India’s cash management services sector. It is also one of the most important players in terms of network locations.

The company has seen steady growth in recent years. The EBITDA margin and PAT margin for FY22 were around 20.73% and 13.31% respectively. The company’s annualized FY23 earnings trade at around 17 times its current valuation (post-new issue). Abhay Doshi (co-founder of UnlistedArena) said the valuations are comparable to its listed ones. comrades.

Radiant Cash Management Services Limited was established in 2005. It is the market leader for retail cash management services in India. This segment involves the collection and distribution of cash to its customers.

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