Radiant CMS receives Sebi approval for IPO

The Chennai-based firm intends to issue up to ₹60 crore worth of fresh shares, while existing shareholders may sell up to 30.13 million equity shares in the initial public offering (IPO).

The offer for sale (OFS) will comprise sale of up to 10.13 million shares by Col. David Devasahayam, Radiant Capital’s founder, and up to 20 million shares by Ascent Capital Advisors India, a private equity firm.

Proceeds from the issue worth ₹20 crore will be used to meet working capital needs, ₹23.92 crore to fund capital expenditure and for general corporate purpose.

IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd and Yes Securities (India) Ltd are advising the company on the IPO.

In 2015, Ascent Capital took a 37.2% stake in the company.

Founded in 2005 by Col. Devasahayam, Radiant Cash Management Services (RCMS) is an integrated cash logistics player with presence in retail cash management segment. It is one of the largest retail cash management firms in India by network locations or touchpoints served as of July 2021.

The company operates in five verticals—cash pick-up and delivery; network currency management; cash processing; cash vans /cash in transit and other value added services.

Clients include some of India’s top banks such as 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-II and tier-III+ towns and cities across all states and Union territories in India excluding Lakshadweep. The company has 1,761 employees and 6,056 cash executives on contract.

RCMS recorded revenue from operations of ₹221.67 crore and profit after tax of ₹32.43 crore in the financial year ended March 2021.