Radiant Cash Management Services Limited is a coordinated company. It was founded in 2005. The company is engaged in cash logistics management. It has a Pan-India presence in RCM, Retail Cash Management services. The company is one of the biggest players in the RCM category, and contact focuses on business management. The company give arrangements of more than 12,150 pin codes all across India. The business operation of the company covers all regions in India except the Lakshadweep region. They have around 42,420 touch points access. In this article, we take a closer look at the Radiant Cash Management IPO Review and its possible future prospects.
Many top private and public sector banks and NBFC’s are their marquee customers. The company also holds the client base in E-Commerce sectors, corporate stores, Small Finance banks, MSME, Small scale NBFCs, Insurance firms, Logistics players in E-Commerce Segments, Retail Oil Appropriation Units and Railways. Some of their clients are Standard Chartered Bank, HDFC Bank Limited, Axis Bank Limited, Kotak Mahindra Bank, Deutsche Bank Limited, Citibank, ICICI Bank Limited and State Bank of India.
The company carries out a wide range of cash management outsourcing services. These are as follows. Their whole business can be divided into five major verticals.
- Cash processing
- Cash pick-up and delivery
- Cash vans along with cash in transit
- Network currency management
- Other worth-added services.
OBJECTS OF THE RADIANT CASH MANAGEMENT IPO ISSUE:
- Prepayment of all the loans of the company, which will be availed on a consolidated basis.
- To meet corporate targets.
- To fund the working capital requirement.
BASIS OF THE IPO OFFER:
- The company is a leading company engaged in Cash Logistics and Retail Cash Management Value Chain.
- The company has a strong presence and a strong distribution network in Tier 2 and Tier 3+ areas.
- The company has a quickly developing end client base with a Pan-India presence.
- The company has a diversified client base with long term association with their clients.
- It helps them strategically pitch up the value-added service.
- The company has a reliable Functional Risk Management portfolio and financial growth plan.
- The company has focused on improving its innovation and technology arm. It helped them to attain increment in terms of the functional benefit.
- The company has a well-qualified, skilled, experienced and knowledgeable management team and board of director group.
RADIANT CASH MANAGEMENT IPO DETAILS:
Radiant Cash Management Services Limited is a company with its headquarters in Mumbai. The company has submitted its DRHP to SEBI. Currently, it is waiting for the approval of SEBI to float its IPO in the market. The IPO consists of an issue of fresh equity shares worth INR 60 crores. It also consists of an OFS of 30,125,000 equity shares. The OFS is brought forward by the promoter and existing stakeholders of the company.
As been stated in the DRHP, the company is not looking for any pre-IPO placement in the IPO offer. In 2015, a leading PE fund, Ascent Capital, bought a stake of 37.2% in the company. As been stated in the DRHP, the promoter of the company will offload 1.012 crore equity shares. The PE fund Ascent Capital Advisors India will let their two-crore equity shares be offloaded in the open market through OFS. Currently, Col. Devasahayam has a stake of 54.40 per cent in the firm. The PE funds hold up to a 37.22 per cent stake.
The company also added that the company would use the funds been acquired from the IPO for working capital expenditure and General Corporate Purpose and CAPEX. The ₹20 crores will be used for working capital requirements and ₹23.92 crores towards CAPEX and general corporate purposes. Check Day by Day IPO Subscription Details (Live Status)
|IPO Opening Date|
|IPO Closing Date|
|Issue Type||Book Building Type|
|Face Value||Rs.1/ Equity Share|
|Min Order Quantity|
|Listing At||BSE, NSE|
|Fresh Issue||60 Crores|
|Offer for Sale||30,125,000 Equity shares|
|Basis of Allotment Date|
|Initiation of Refunds|
|Credit of Shares to Demat Account|
|IPO Listing Date|
|Basis of Allotment Type||% Of the IPO Offer|
|Qualified Institutional Buyer||50|
STRENGTHS AND GROWTH ASPECTS OF RADIANT CASH MANAGEMENT IPO:
- The company’s integrated service model and the product offering allowed them to shift the business to provide value-added services for the clients.
- The company offers more reliable service, competitive pricing, accountability, proper and improved advance route planning, increased client loyalty, fostered reconciliation, and reduced turnover.
- The company is the largest player in the RCM segment. It is also the largest company in terms of network locations/touchpoints been served.
- In the financial year 2020, the company outperformed the industry in terms of financial parameters such as EBITDA margin, ROCE, and ROE. It determines the potential of the company.
- The Company’s Board of Directors and the key management professionals have vast experience, skills in business operations, route planning, logistics and risk management. They are also very skilled in financial aspects, including accounting, finance, and financial service industry knowledge.
- Their integrated products and services are backed by specialized technology along with the process controls. It permits the company to give a wide range of services and produce strategically pitching openings and driving collaborations and efficiencies all through their association.
- The company also focuses on giving down the line advances to their customers to suit their requirements and improve their clients’ experience. Example: API transaction with their customers, RADMUS mobile application, and versatile application for a safe start to finish compromise.
- The company stated in their DRHP that the Indian CMS Cash Management Services market would grow in the coming years. The revenue will be growing at a CAGR of 10 per cent during the period FY22-FY24.
- The company has already planned to use ₹23.92 crores. It will be buying 220 specially fabricated armoured vans. Currently, the total fleet of armoured vans of the company is 694 vans.
WEAKNESS AND THREATS OF RADIANT CASH MANAGEMENT IPO:
- The company is highly dependent on one particular sector- Banking Sector for its revenue and business operation.
- The company generates major revenue from small clients.
- Due to digitalization in India, people are using less cash as major settlements and transactions are done online. It could adversely affect the business operation of the organization.
- The COVID-19 pandemic had adversely affected the business operation of the company.
- The company will most likely be unable to keep up with current development rates, and the previous financial year performance may not be demonstrative of the company’s future development.
- Th operation of the company will also be affected by the disappointments of the IT support system, innovation frameworks and data analysis system.
- The company earlier carried out a related party transaction. The circumstances may be such that the company may have to do it again.
- The company is highly vulnerable to many security and safety breaches that could emerge from inside their organization and contrarily affect their tasks.
- The company is currently facing trials under legal procedures. Any negative news from there can affect the business operation.
- Inability to acquire or keep up with administrative consents, licenses, and endorsements for their procedure consistently may adversely affect their activities.
- Negative exposure about their organization or brand could bring about a drop in sales, revenue and PAT.
- The company is currently subject to some contingent liabilities.
- The company don’t possess any land bank. Their offices, buildings and other centres are currently on lease.
FINANCIAL TRENDS OF RADIANT CASH MANAGEMENT IPO:
- The Net worth of the Company increased by 15.07 % in the last quarter.
- The EBITDA of the Company increased by 23.75 % in the last quarter
- The Total assets of the company decreased by -40.32 % in the last quarter
- The Liabilities of the Company decreased by -65.89 % in the last quarter
|Operating Revenue||INR 100 Crores- 500 Crores|
|Net worth||15.07 %|
|Return on Equity||31.25 %|
|Total Assets||-40.32 %|
|Fixed Assets||30.80 %|
|Current Assets||-45.36 %|
|Current Liabilities||-65.89 %|
|Trade Receivables||11.52 %|
|Trade Payables||159.94 %|
|Particulars||For the year/period ended (in Cr.)|
|Profit After Tax||7.44||32.43||36.50||25.02|
- The company’s operational revenue was at ₹224.16 crores in March 202. It also registered a PAT of ₹32.43 crores at the same time.
- The general currency movement recorded by the company was at Rs. 368.39 billion at the end of July 2021.
- The company manages the cash volume of ₹400 crores daily. It increases to ₹1000 crore during long weekends. The company is focusing on augmenting its working capital funding. It will enable it to scale up its operational capacity, which will allow them to handle higher daily cash volumes.
The promoter of the company is:
- Col David Devasahayam
- Dr. Renuka David
|Pre-Issue Share Holding||62.79%|
|Post Issue Share Holding|
28, Vijayaraghava Road,
T. Nagar, Chennai 600 017,
Tamil Nadu, India
Tel: +91 044 4904 4904
C 101, 247 Park, L.B.S. Marg, Vikhroli (West),
Mumbai 400 083
Tel: +91 22 4918 6200