Radiant Cash Management Services Ltd has filed a draft Red Hering prospectus with the Securities and Exchange Board of India to raise funds through an IPO.
The IPO consists of a new issue of shares worth ₹60 crore and an offer to sell up to 30.13 million shares by its existing promoters and shareholders.
The OFS includes the issuance of up to 10.13 million shares by Col David Devasahayam and up to 20 million shares by Ascent Capital Advisors India. Currently, Devasahayam has a 54.40% interest in the company, while Ascent Capital has a 37.221% interest in the company.
Well worth the proceeds from the issue ₹20 crore will be used to finance working capital requirements. As of August 2021, the outstanding working capital amount was between fund-based and non-fund-based ₹21.42 crore and ₹21.02 crore or
The company manages a cash volume of approx ₹400 crore daily, which sometimes increases to around ₹1000 crore on long weekends. The increase in working capital funding will allow the company to expand its capacity to handle higher daily cash volumes.
The company also plans to use it ₹23.92 crore for the purchase of 220 purpose-built armored transporters. As of July 2021, it has deployed a fleet of 694 manufactured armored transporters.
IIFL Securities, Motilal Oswal and Yes Securities are the lead managers of the issue.
The company is an integrated cash logistics player with a presence in the Retail Cash Management (RCM) segment of the cash management services industry in India and is one of the largest players in the RCM segment in terms of network locations served as of July 31 or Touchpoints.
The company provides services through 12,150 PIN codes in India covering all districts (except Lakshadweep), with approximately 42,420 touchpoints serving more than 4,700 locations as of July 31st.
For the four months ended July 2021 and fiscal year 2021, the total annual currency movements, or the total value of the currency that ran through their RCM operation, were ₹368.39 billion and ₹1.29 trillion
Operating sales for the 2021 financial year were included ₹221.67 crore versus ₹248,298 crore a year ago. The period surplus was ₹32.43 crore versus ₹36.50 million euros last year. In August total borrowing was ₹23.22 million euros.
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