Radiant Cash Management Services Limited IPO Details
Radiant Cash Management Services Limited is an integrated cash logistics player with leading presence in retail cash management (“RCM”) segment of the cash management services industry in India and is one of the largest players in the RCM segment in terms of network locations or touch points served as of March 31, 2022.
Business Verticals:
- Cash pick-up and delivery
- Network currency management
- Cash processing
- Cash Vans/ cash in transit
- Other Value added services
Objective of the Issue
It is proposed that the Fresh Issue’s net proceeds be used as follows:
- Funding working capital requirements.
- Funding of capital expenditure requirements for purchase of specially fabricated armoured vans.
- General Corporate purposes.
| Radiant Cash Management Limited IPO | Details |
|---|---|
| Price Band | ₹94 to ₹99 per share |
| Face Value | ₹ 1 per share |
| Issue Size | 387.94 Crs |
| Fresh Issue | 60.00 Crs |
| Offer for Sale | 327.94 Crs |
| Opening Date | 23 Dec 2022 |
| Closing Date | 27 Dec 2022 |
| Allotment | 30 Dec 2022 |
| Initiation of Funds | 02 Jan 2023 |
| Credit to Demat | 03 Jan 2023 |
| Listing Date | 04 Jan 2023 |
| Pre Issue Share Holding | 66.39% |
| Post Issue Share Holding | 53.21% |
| 1 lot | 150 Shares (₹ 14,850/-) |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Retail (Min) | 1 Lot (150 Shares ~ ₹ 14,850/-) |
| Retail (Max) | 13 Lots (1950 Shares ~ ₹ 1,93,050/-) |
| S-HNI (Min) | 14 Lots (2100 Shares ~ ₹ 2,07,900/-) |
| B-HNI (Min) | 68 Lots (10200 Shares ~ ₹ 10,09,800/-) |
| Promoters | Col. David Devasahayam Dr Renuka David |
| Draft Red Herring Prospectus | DRHP |
| Red Herring Prospectus | RHP |
| Grey Market Premium | Click Here |
| Allotment Status | Check Here |
The Radiant Cash Management Services Limited IPO’s bid period is from December 23, 2022, at 10:00 A.M., to December 27, 2022, at 5:00 P.M. UPI Mandate confirmation must be received by 5 PM on the day the issue closes.
EBITDA & PAT (in Crs)
EBITDA– Earnings Before Interest Tax Depreciation & Amortization PAT – Profit After Tax
Total Assets, Share Capital and Borrowings (in Crs)
Revenue Growth (in Crs)
Peer Comparison
| Particulars | Radiant Cash Management Services Limited | SIS Limited | CMS Info Systems Limited |
|---|---|---|---|
| Face Value | 1 | 5 | 10 |
| EPS | 3.77 | 21.87 | 14.33 |
| PE | 26.25 (taking 99 as the listing price) | 17.62 | 21.79 |
| RoNW% | 27.34 | 15.71 | 17.84 |
| Revenue from Operations (in ₹ Crs) | 286.97 | 10,111.75 | 1597.58 |
| EBITDA Margin (%) | 20.73 | 5.48 | 25.52 |
| PAT Margin (%) | 13.31 | 3.22 | 14.02 |
| ROE | 27.34 | 15.71 | 17.84 |
| Debt to Equity Ratio | 0.16 | 0.74 | 0.16 |
Analysis:
If we analyse the financial parameters then it can be seen that the EBITDA margin, PAT margin & Revenue decreases in FY 2021 due to covid lockdown however, it increased in FY 2022 with levels greater than FY 2020. However, total assets keeps on increasing consistently YoY basis.
Taking the EPS as 3.77 as per RHP till March 2022, PE ratio is 24.68 which is on the higher side in comparison to the PE ratio of its peer. This simply depicts that the IPO price is on the higher side but we cannot make any decision without considering other fundamental parameters.
RoNW of 27.34% is highest among the peers & EBITDA margin of 20.73% is second among its peers. However, its revenue is lowest in the segment. Though PAT margin and ROE of 27.34 is good. However, looking at the current trend of its peers it seems both are in running correction. Also, the overall condition of the market is not favourable too. So its better to avoid this IPO for now.