Mumbai: Radiant Cash Management Services Ltd, backed by Ascent Capital, has received approval from markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The intention of the Chennai based firm. to be issued 60 crore new shares, while existing shareholders can sell 30.13 million equity shares.
The OFS includes issuance of 10.13 million shares by Col. David Devasahyam and up to 20 million shares by Ascent Capital Advisors India.
income from issue of value 20 crore will be used to meet working capital requirements, and another 23.92 crore for capital expenditure financing and general corporate purpose.
In 2015, leading private equity (PE) firm Ascent Capital acquired a 37.2% stake in the company.
Established in 2005 by Col. David Devasahyam, Radiant Cash Management Services (RCMS) is an integrated cash logistics player with a leading presence in the Retail Cash Management (RCM) segment of the Cash Management Services Industry in India and one of the largest players in RCM . Segment in terms of network locations or touchpoints by July 2021.
It operates its business in five verticals, namely cash pick-up and delivery; network currency management; cash processing; Cash Van / Cash in transit and other value added services.
The company’s clients include some of the largest banks operating in India. These include HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, State Bank of India and Yes Bank. It also services foreign lenders Citibank, Deutsche Bank, Standard Chartered Bank and HSBC.
As of 31 July 2021, Radiant has over 42,420 touch points in 12,150 pin codes covering Tier II and Tier III towns and cities across states and union territories in India, excluding Lakshadweep. The company is managed by a team of highly professional ex-Army senior management, with 1,761 employees and 6,056 cash officers on contract.
Radiant Cash Management Services’ revenue from operations was 221.67 crore during the year ended March 2021, while its profit after tax during the year was 32.43 crores.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are advising the company on the IPO.
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