Radiant Cash Management
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Dec 2022 – 27 Dec 2022
- Listing date
- 04 Jan 2023
- Face value
- ₹1 per share
- Issue price
- ₹94 per share
- Lot size
- 150 shares
- Total issue size
- ₹257 Cr
- Market cap at offer price
- ₹1,062 Cr
- Promoter holding
- 66.39% → 53.21% pre-issue → post-issue
- ISIN
- INE855R01021
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- 28, Vijayaraghava Road, T.Nagar, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,17,55,681 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 150 shares per lot, in multiples, at ₹94
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 150 | ₹14,100 |
| Retail (max) | 14 | 2,100 | ₹1,97,400 |
| S-HNI (min) | 15 | 2,250 | ₹2,11,500 |
| S-HNI (max) | 70 | 10,500 | ₹9,87,000 |
| B-HNI (min) | 71 | 10,650 | ₹10,01,100 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.77 | — |
| P/E (×) | 24.93 | — |
| Market cap | — | ₹1,062 Cr |
Key performance indicators
- Return on net worth
- 27.34%
- ROCE
- 33.07%
- Debt / equity
- 0.21
- PAT margin
- 13.31%
- EBITDA margin
- 20.73%
- NAV per share
- ₹13.80
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Radiant Cash Management
Radiant Cash Management Services Limited was incorporated in Chennai, Tamil Nadu on March 23, 2005 as a private limited company and converted to a public limited company on August 25, 2021. The Company is a leading integrated cash logistics player with significant presence in the retail cash management (RCM) segment of India's cash management services industry. It operates across 13,044 pin codes covering all districts (other than Lakshadweep) with approximately 55,513 touch points serving more than 5,388 locations as of July 31, 2022. The Company serves marquee clients including major foreign, private and public sector banks, with end users including large e-commerce companies, retail chains, NBFCs, insurance firms, e-commerce logistics players, railways and retail petroleum distribution outlets. For the four months ended July 31, 2022, Fiscal 2022, 2021 and 2020, the Company's total annual currency movement amounted to ₹485.85 billion, ₹1,303.80 billion, ₹912.22 billion, and ₹1,290.77 billion respectively. In Fiscal 2021, the Company was the organization with the second highest EBITDA margin, ROCE and ROE amongst organized players in the cash management services segment.
Company Analysis
from RHPRadiant Cash Management Services Limited is an integrated cash logistics player providing retail cash management and related services spanning cash pick-up and delivery, network currency management, cash processing, and cash-in-transit services across India.
Radiant Cash Management Services Limited was incorporated in Chennai, Tamil Nadu on March 23, 2005 as a private limited company and converted to a public limited company on August 25, 2021. The Company is a leading integrated cash logistics player with significant presence in the retail cash management (RCM) segment of India's cash management services industry. It operates across 13,044 pin codes covering all districts (other than Lakshadweep) with approximately 55,513 touch points serving more than 5,388 locations as of July 31, 2022. The Company serves marquee clients including major foreign, private and public sector banks, with end users including large e-commerce companies, retail chains, NBFCs, insurance firms, e-commerce logistics players, railways and retail petroleum distribution outlets. For the four months ended July 31, 2022, Fiscal 2022, 2021 and 2020, the Company's total annual currency movement amounted to ₹485.85 billion, ₹1,303.80 billion, ₹912.22 billion, and ₹1,290.77 billion respectively. In Fiscal 2021, the Company was the organization with the second highest EBITDA margin, ROCE and ROE amongst organized players in the cash management services segment.
Objects of the Issue
- Funding working capital requirements ₹200.00 million p.25
- Funding of capital expenditure requirements for purchase of specially fabricated armoured vans ₹254.80 million p.25
- General corporate purposes ₹37.72 million p.25
- Funding working capital requirements ₹200.00 million p.93
- Funding of capital expenditure requirements for purchase of specially fabricated armoured vans ₹254.80 million p.97
- General corporate purposes ₹37.72 million p.93
- Repayment of borrowings
- Funding of capital expenditure requirements for purchase of specially fabricated armoured vans ₹254.80 million p.165
- Funding of capital expenditure requirements for purchase of specially fabricated armoured vans p.177
Issue Structure
- Total Issue
- ₹2,566.41 million
- Fresh Issue
- 5,454,546 Equity Shares, aggregating to approximately ₹540.00 million
- Offer for Sale
- 21,222,431 Equity Shares, aggregating to ₹2,026.41 million
- Price Band
- Floor Price: ₹94 per Equity Share; Cap Price: ₹99 per Equity Share
- Lot Size
- 150 Equity Shares and in multiples of 150 Equity Shares thereafter
- Face Value
- ₹1 per Equity Share
Business Model
The Company earns revenue through five main verticals: (1) cash pick-up and delivery services, (2) network currency management (cash burial), (3) cash processing, (4) cash vans/cash in transit services, and (5) other value-added services. For the three-month period ended June 30, 2022 and Fiscal Years 2022, 2021 and 2020, the Company derived ₹838.62 million (99.78%), ₹2,852.95 million (99.74%), ₹2,211.03 million (99.74%) and ₹2,459.84 million (99.08%) respectively of total revenues from operations relating to transport, handling or management of cash. Transaction fees are determined through negotiations with customers and are typically charged on either a fixed per-point basis or on a volume of cash handled basis.
Business Segments
SWOT Analysis
- • Leading RCM segment presence with extensive network coverage(p.24)
- • Extensive geographic reach across India with high service coverage(p.24)
- • Strong marquee client base including largest banks and e-commerce players(p.24)
- • High profitability metrics among organized players(p.24)
- • Leading integrated cash logistics player with pan-India presence(p.102)
- • Strong network in Tier 2 and Tier 3+ locations with fast growing end-user segments(p.102)
- • Diversified client base with long-standing relationships and cross-sell capability(p.102)
- • Robust operational risk management systems(p.102)
- • Advanced technology infrastructure optimizing operational profitability(p.102)
- • Experienced management team backed by reputed institutional investor(p.102)
- • Leading integrated cash logistics player in consolidating RCM market with large touch point network(p.156)
- • Pan-India presence with 55,513 touch points covering 13,044 pin codes across all districts except Lakshadweep(p.156)
- • Strong presence in high-growth Tier 2 and Tier 3+ towns where 86% of touch points are located(p.161)
- • Marquee client base including India's largest banks with long-term relationships(p.161)
- • Four of top five clients retained for more than five years, demonstrating sticky business model(p.161)
- • Industry-leading profitability metrics with highest EBITDA margin, ROCE and ROE among organized cash management players(p.156)
- • Robust risk management with extremely low cash loss of 0.001-0.007% of cash movement(p.162)
- • Experienced management team with 15+ years industry experience led by Col. David Devasahayam(p.163)
- • High dependence on banking sector for revenues(p.31)
- • Revenue concentration among limited customers(p.32)
- • Exposure to security risks from internal threats including employee fraud(p.40)
- • Significant reliance on related party services with potential conflicts of interest(p.39)
- • Dependence on limited skilled personnel for complex operations(p.46)
- • Contingent liabilities from tax disputes(p.48)
- • Reliance on leased premises with renewal risk(p.50)
- • High debt obligations with restrictive covenants(p.46)
- • Reputational vulnerability to negative publicity in trust-dependent business(p.47)
- • Deficiencies in internal controls and compliance history(p.48)
- • Dependence on top three clients for significant revenue concentration(p.161)
- • Discontinued ATM cash management operations, reducing diversification within cash management services(p.160)
- • Limited value-added services contribution to revenue with room for expansion(p.156)
- • Significant dependence on a limited number of customers(p.305)
- • Seasonal revenue concentration with high fixed costs(p.304)
- • Outstanding tax and service tax liabilities(p.322)
- • Growing cash circulation with positive CIC trajectory(p.24)
- • Cash will remain predominant payment mode through mid-2020s(p.33)
- • Expansion into value-added services and direct end-user targeting(p.37)
- • Industry consolidation trend favoring larger organized players(p.42)
- • Expansion in consolidating cash logistics industry(p.102)
- • Growth in Tier 2 and Tier 3+ locations with fast-growing end-user segments(p.102)
- • Cross-selling value-added services to diversified client base(p.102)
- • Deployment of proceeds for working capital expansion and fleet acquisition(p.93)
- • Enhanced visibility and brand image through public listing(p.92)
- • RCM market projected to grow at 20.3% CAGR from ₹6.8 billion in FY2021 to ₹20.4 billion by FY2027(p.160)
- • Currency-in-circulation expected to grow to ₹50 trillion by FY2027 from ₹31.4 trillion in FY2022(p.160)
- • E-commerce market projected to reach ₹9.4 trillion by FY2025 with 60% COD penetration creating cash management demand(p.160)
- • Tier 2 and Tier 3 expansion driving cash management adoption with 70-90% COD preference in lower tiers(p.160)
- • Value-added services strategy to expand network currency management, cash processing and vaulting(p.164)
- • Consolidation trend creating opportunity to capture market share from unorganized players unable to meet RBI net worth requirements(p.165)
- • Direct end-user strategy to improve route density and profitability on existing infrastructure(p.165)
- • Plan to purchase ₹254.80 million in additional armoured cash vans to reduce lease costs and capture cash-in-transit market(p.165)
- • Decline in cash usage due to digital payment proliferation(p.33)
- • Government initiatives promoting cashless payments(p.33)
- • COVID-19 pandemic creating demand volatility and operational disruptions(p.36)
- • Risk of future demonetization or similar policy shocks(p.38)
- • Increased competition and pricing pressure in cash management market(p.42)
- • Exposure to external criminal and security threats(p.41)
- • Regulatory risk: failure to obtain/renew licenses and permits(p.46)
- • Economic slowdown in India reducing cash circulation and demand(p.52)
- • Inflation pressure unable to be fully passed to customers(p.55)
- • Policy changes in government economic liberalization affecting operations(p.55)
- • Tax law changes and increased compliance burden(p.54)
- • Competition law application affecting business arrangements(p.56)
- • Foreign investment restrictions limiting capital access(p.56)
- • Sovereign credit rating downgrade impact on borrowing costs(p.54)
- • Rising digital payments and mobile wallets reducing cash transaction volumes in urban areas(p.144)
- • Increasing POS terminal penetration by banks discouraging cash usage with 6.07 million terminals deployed(p.144)
- • RBI compliance mandates (₹1 billion net worth, 300+ cash vans, GPS/CCTV) creating barriers but also consolidating industry(p.158)
- • Intense market competition from consolidated players CMS and others with broader service offerings(p.143)
- • Customer concentration risk with top three clients representing 39-45% of revenue and renewals on annual basis(p.161)
- • Potential regulatory requirement to shift from lease-based to compliance-ready owned van fleet increasing capital intensity(p.147)
- • Economic uncertainty and COVID-19 pandemic impact(p.323)
- • Seasonality and industry cyclicality affecting revenue(p.304)
- • Competition from organized and unorganized players(p.304)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Col. David Devasahayam | Promoter/Promoter Selling Shareholder | 58.00% | — |
| Dr. Renuka David | Promoter | 8.39% | — |
| Col. David Devasahayam | Promoter/Selling Shareholder | 58.00% | 55.03% |
| Dr. Renuka David | Promoter | 8.39% | 7.97% |
| Ascent | Selling Shareholder | 33.61% | 31.89% |
| Col. David Devasahayam | Promoter | — | — |
| Ascent Capital | Promoter Group | — | — |
| Col. David Devasahayam | Promoter | 58.00% | — |
| Dr. Renuka David | Promoter | 8.39% | — |
| Col. David Devasahayam | Promoter | 58.00% | — |
| Dr. (Mrs.) Renuka David | Promoter | 8.39% | — |
| Col. David Devasahayam | Promoter | — | — |
| Ascent Capital Advisors India Private Limited | Promoter Group | — | — |
| Col. David Devasahayam | Promoter | — | — |
| Dr. Renuka David | Promoter | — | — |
| Col. David Devasahayam | Promoter | — | — |
| Ascent Capital Advisors India Private Limited | Promoter/Selling Shareholder | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.