Radiant Cash Management Services, Backed by Ascent Capital, Obtains Sebi Approval for IPO
MUMBAI: Radiant Cash Management Services Ltd, backed by Ascent Capital, has received approval from market regulator Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO).
The Chennai-based company intends to issue up to ₹60 crores of new shares, while existing shareholders can sell up to 30.13 million shares.
The SFO includes the issuance of up to 10.13 million shares by Colonel David Devasahayam and up to 20 million shares by Ascent Capital Advisors India.
The issue proceeds are worth ₹20 crore will be used to fund working capital requirements, and another ₹23.92 crores for funding capital expenditures and general corporate purposes.
In 2015, leading private equity (PE) firm Ascent Capital acquired a 37.2% stake in the company.
Founded in 2005 by Colonel David Devasahayam, Radiant Cash Management Services (RCMS) is an integrated cash logistics player with a leading presence in the retail cash management (RCM) segment of the services industry cash management company in India and one of the largest RCM players. segment in terms of network locations or touchpoints served as of July 2021.
It operates through five verticals, namely cash pickup and delivery; network currency management; cash processing; cash/money transfer vans 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 July 31, 2021, Radiant has over 42,420 touchpoints across 12,150 PINs covering tier two and tier three cities across states and union territories in India, excluding Lakshadweep. The company is led by a highly professional ex-army senior management team with 1,761 employees and 6,056 contracted executives.
Radiant Cash Management Services operating revenue is ₹221.67 crore in the fiscal year ending March 2021, while its profit after tax during the year stood at ₹32.43 crores.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited are advising the company on the IPO.
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