New Delhi: Radiant Cash Management Services, supported by Ascent Capital, has submitted its draft Red Herring Prospectus (DRHP) to the capital market regulator SEBI in order to start its initial public offering (IPO).
The Chennai-based company plans to issue new shares valued at up to Rs. 60 billion, while existing shareholders can sell up to 30.13 million shares. The OFS includes an issue of up to 10.13 million shares in Col. David Devasahayam and up to 20 million shares in Ascent Capital Advisors India.
The Rs 20 billion issue proceeds will be used to fund working capital requirements and Rs 24 billion will be used to finance investments and general corporate purposes.
In 2015, the private equity firm Ascent Capital, a leading PE fund, acquired 37.2% of the shares in the company.
According to DRHP, revenue of the Indian cash management services market grew at a CAGR of more than 10 percent between fiscal 2010 and fiscal year 2021, increasing from approximately Rs.1,000 billion to Rs.2,770 billion during that period.
Founded in 2005 by Colonel David Devasahayam, Radiant Cash Management Services (RCMS) is an integrated player in cash logistics 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 the RCM segment in India Relation to network locations or touchpoints that will be served from July 2021.
It operates its business in five verticals, namely cash pickup and delivery; Network currency management (also known in technical jargon as cash burial); Cash processing; Cash transporter / cash and other value-added services.
The company has regular clients that include some of the largest overseas, private and public banks, and end-users of our services include some of the largest e-commerce companies, retail chains, NBFCs, insurance companies, e-commerce logistics companies, railways, and retail outlets for petroleum.
As of July 31, 2021, Radiant has more than 42,420 touchpoints with 12,150 PIN codes covering Level 2 and Level 3+ cities in all states and union territories in India (excluding Lakshadweep). The company is run by a team of highly professional ex-army executives with 1,761 employees and 6,056 cash managers under contract.
IIFL Securities, Motilal Oswal Investment Advisors and Yes Securities (India) are the leading lead managers on this issue.