Radiant Cash Management shares debut at a 10% premium after company reduces IPO size

• Shares of Radiant Cash Management Services listed at ₹103 against the issue price of ₹94 per share on NSE.
• The IPO was not fully subscribed as it received only 53% subscription from investors.
• The market capitalisation of the company stood at ₹1,060 crore as of 9:45 am, according to BSE data.

Shares of Radiant Cash Management made a positive debut on the stock exchanges, listing at a premium of nearly 10% at ₹103 as against the issue price of ₹94 per share on NSE. Meanwhile on BSE, shares of the company opened at 5.64% premium at ₹99.30.

Radiant Cash Management is the first stock to be listed on exchanges in 2023.

This comes as a surprise to investors as the grey market indications for the Chennai-based cash logistics player were dull at a ₹6 discount considering the IPO was not even subscribed fully.

GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The IPO did not receive much demand from investors amidst volatile market conditions, as it was subscribed just 0.53 times. The IPO was subscribed 1.01 times by qualified institutional buyers, 0.66 times by non-institutional investors and the portion reserved for retail investors was subscribed 0.21 times.

Later, since the IPO was not fully subscribed the company reduced the total IPO size to ₹257 crore from ₹388 crore. Fresh issue by the company was cut down to ₹54 crore from ₹60 crore earlier. Besides, shares to be sold by promoters were also slashed from ₹328 crore to ₹203 crore. The company had also raised ₹116 crore from anchor investors ahead of the issue.

After the revision in IPO size, shares of the company are allotted at ₹94, which is lower price band instead of ₹99, which was the upper limit of the price band.

The market capitalisation of Radiant Cash Management currently stands at ₹1,060 crore, according to BSE data.

The net proceeds from the fresh issue will be used towards funding working capital requirements, capital expenditure needs for the purchase of specially- fabricated armoured vans and other general corporate purposes.

Incorporated in 2005, Radiant Cash Management Services is a cash logistics player that caters to banks, financial institutions, and organised retail and e-commerce companies in India.

It provides services across 13,044 pin codes in India covering all districts (other than Lakshadweep) with about 55,513 touch points serving more than 5,388 locations as of July 31, 2022, it said.

The company operates across five verticals – cash pick-up and delivery, network currency management (also known as cash burial in industry parlance), cash processing, cash vans/cash in transit and other value added services.

Amongst the key clients of Radiant Cash Management are Axis Bank, Citibank, Deutsche Bank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, HSBC and Yes Bank.


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