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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 Chennai-based firm intends to issue up to ₹60 crore worth of new shares, while existing shareholders may sell up to 30.13 million equity shares.
The OFS comprises issue of up to 10.13 million shares by Col. David Devasahayam and up to 20 million shares by Ascent Capital Advisors India.
The proceeds from the issue worth ₹20 crore will be used to fund working capital requirements, and another ₹23.92 crore for funding of capital expenditure and for general corporate purpose.
In 2015, leading private equity (PE) firm Ascent Capital acquired a 37.2% stake in the company.
Founded in 2005 by Col. David Devasahayam, Radiant Cash Management Services (RCMS) is an integrated cash logistics player with leading presence in retail cash management (RCM) segment of the cash management services industry in India and one of the largest players in the RCM segment in terms of network locations or touchpoints served as of July 2021.
It operates its business across five verticals, namely cash pick-up and delivery; network currency management; cash processing; cash vans /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 provides services to foreign lenders Citibank, Deutsche Bank, Standard Chartered Bank, and HSBC.
As of 31 July 2021, Radiant has more than 42,420 touch points across 12,150 pin codes covering tier two and tier three towns and cities across states and union territories in India, barring Lakshadweep. The company is managed by a team of highly professional ex-army senior management with 1,761 employees and 6,056 cash executives on contract.
Radiant Cash Management Services’ revenue from operations stood at ₹221.67 crore during the year ended March 2021, while its profit after tax during the year stood at ₹32.43 crore.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are advising the company on the IPO.
