Radiant Cash Management Services files IPO papers with SEBI

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Chennai-based Radiant Cash Management Services (RCMS) has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).

The IPO of the company backed by Ascent Capital Advisors includes a new issue of ₹ 60 crore and an offer to sell (OFS) of up to 3.01 crore of shares by existing promoters and investors.

According to the draft document, the promoter, Colonel David Devasahayam, will sell up to 1.012 crore of shares while Ascent Capital Advisors India will offload two crore of shares under the OFS channel. Currently, Devasahayam owns a 54.40% stake in the company while Ascent Capital holds a 37.22% stake.

Of the total proceeds, the company plans to use 20 crore for working capital requirements and 23.92 crore for capital expenditure and general business purposes.

Company background

Founded in 2005 by Colonel David Devasahayam, RCMS is an integrated player in cash logistics and one of the main players in the retail cash management (RCM) segment in terms of network locations as of July 2021 In 2015, private equity firm Ascent Capital acquired a 37.22 percent stake in the business.

The company’s operations are divided into five verticals: cash pickup and delivery; network currency management; cash handling; vans / cash in transit and other value added services. It has renowned clients, including some of the largest foreign banks, private and public.

As of July 31, 2021, Radiant had more than 42,420 contact points out of 12,150 PIN codes covering Tier 2 and 3 cities in all states and union territories in India (except Lakshadweep). The company has 1,761 employees and 6,056 treasury executives under contract.

RCMS’s operating income was 221.67 crore in the fiscal year ended March 2021 with after-tax profit of ₹ 32.43 crore. IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are principally responsible for the issue.

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