Radiant CMS IPO

Radiant Cash Management Services Limited is an integrated cash logistics company with a dominant presence in India’s retail cash management (“RCM”) segment of the cash management services business, and they are among the RCM sector’s biggest players in terms of network sites or touch points handled. Radiant CMS IPO will hit the market in 23 December 2022.

About Radiant CMS

They provide solutions over 12,150 pin codes in India, covering all districts (except Lakshadweep), with around 42,420 touch points serving more than 4,700 sites as of July 31, 2021.

Several of the top foreign, private, and public sector banks are among their marquee clients, and some of the largest e-commerce enterprises, retail chains, NBFCs, insurance firms, ecommerce logistics players, railways, and retail petroleum distribution units are among their end users.

Their overall annual currency movement, or the total value of the currency travelling via their RCM business, was 368.39, 912.22, 1,290.77, and 1,131.34 billion for the 4 months ending July 31, 2021 & Fiscals 2021, 2020, and 2019.

Services

For banks, financial institutions, and e-commerce enterprises in India, they cater to a wide range of cash management outsourcing needs.

They have 5 verticals in which they operate:

1. Cash pick-up and delivery;
2. Network currency management (also termed as cash burial in the sector)
3. Cash processing
4. Cash vans/cash in transit
5. Other value added services.

They had 42,420 touch points across 12,150 pin codes, spanning 6,759 tier 2 and 29,043 tier 3+ towns and cities across all Indian states and union territories.

They were able to acquire additional clients because of their capacity to provide RCM services throughout India.

Clients

A few of India’s biggest international, private sector, and public sector banks (such as India’s biggest public sector bank) are among their clients.

Axis Bank Limited, Citibank, Deutsche Bank Limited, HDFC Bank Limited, ICICI Bank Limited, Kotak Mahindra Bank, Standard Chartered Bank, State Bank of India, The Hongkong & Shanghai Banking Corporation Limited, as well as Yes Bank Limited are some of their most important customers.

In Fiscal 2021, 4 of their top 5 customers have been with company for more than 5 years. E-commerce corporations, retail chains, NBFCs, insurance firms, ecommerce logistics players, and railways are among their end user groupings, which are fairly well spread across different sectors.

Radiant CMS IPO

Radiant Cash management Services Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 60 crores & 30,125,000 equity shares on 08 October 2021.

The offer includes fresh issue of INR 60 crores value equity shares and there is an offer for sale (OFS) of 30,125,000 equity shares by the promoters mentioned in the DRHP. They are not looking for any pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	159.57	162.14	157.62	141.44
Total Revenue	59.87	224.16	251.78	223.13
Profit After Tax	7.44	32.43	36.50	25.02

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	3.20	3.20	3
Financial Year 2020	3.60	3.60	2
Financial Year 2019	2.47	2.47	1
Weighted Average	3.21	3.21
30 June 2021	0.73	0.73

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following business strengths, they feel, enable them to compete effectively in the sector:

• In a consolidating business, the leading integrated cash logistics player is present across the retail cash management value chain.
• With a strong network in Tier 2 and Tier 3+ regions and fast-growing end user sectors, they have a pan-India presence.
• Client base is diverse, with long-term relationships and the opportunity to cross-sell value-added services.
• Operational Risk Management that is dependable.
• Technology has been significantly improved in order to increase operational profitability.
• Financial growth that is consistent.
• A seasoned management team and a reputable institutional investor back the company.

Radiant CMS IPO Peer Comparison

Their firm specialises in cash management and managed services. They think that none of India’s publicly traded companies are solely involved in a portfolio of businesses similar to theirs.

Nevertheless, there is one publicly traded firm in India that offers cash management services, among other things.

S. No.	Face Value	Company Name	PE
1	5	SIS Limited	19.90

Note:

The P/E Ratio was calculated using the BSE platform’s closing market price of equity shares on October 5, 2021.

Radiant CMS IPO Details

IPO Opening Date	23 December 2022
IPO Closing Date	27 December 2022
Issue Type	Book Building
Face Value	1 per share
IPO Price	INR 94 to 99 per equity share
Market Lot	150
Min Order Quantity	INR 14850
Listing At	BSE, NSE
Issue Size	387.94 Cr
Fresh Issue	60 Crores
Offer for Sale	30,125,000 Equity shares

Radiant CMS IPO Date

Radiant CMS IPO opening date is 23 December 2022, and the closing date is 27 December 2022. The Radiant CMS IPO issue may list in 04 January 2022.

IPO Opening Date	23 December 2022
IPO Closing Date	27 December 2022
Basis of Allotment Date	02 January 2022
Initiation of Refunds	02 January 2022
Credit of Shares to Demat Account	03 January 2022
IPO Listing Date	04 January 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot, based on availability.

Radiant CMS IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Radiant CMS IPO.

Radiant CMS IPO GMP

Radiant CMS IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022
December 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Radiant CMS IPO Review

Radiant CMS IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Radiant CMS IPO is good or bad.

Radiant CMS IPO Risk

• In India, their firm is heavily reliant on the banking sector for revenue.
• A small number of clients account for a significant amount of their revenue.
• In India, a decrease in the availability or use of cash as the primary means of payment could have a negative impact on their company.
• The COVID-19 epidemic has had, and continues to have, negative consequences for the company.
• They  may not be able to maintain current growth rates, and their past performance may not be indicative of future growth.
• Failures of their information technology systems may have a significant negative impact on their business.
• They have engaged in related party transactions in the past and may do so again in the future.

Other Threats

• They are vulnerable to a variety of security vulnerabilities that could arise from within their company and have a negative impact on their operations.
• Their Company is involved in ongoing legal processes that may have a negative impact on their operations.
• Failure to obtain or maintain regulatory permissions, licences, and approvals for their operations on a regular basis may have a negative impact on their operations.
• Negative publicity about their company or brand could result in a drop in sales or profits.
• Certain contingent liabilities may have an impact on their financial situation.
• They do not own the property or buildings on which their offices are located, including their Registered Office and Corporate Office, which they lease.

Business Approach

Their integrated products are backed by specialised technology and process controls, allowing them to provide a wide range of services while generating cross-selling opportunities and driving synergies and efficiencies throughout their organisation.

They also strive to upgrade and deliver the latest technologies to their clients in order to suit their needs and improve their experience.

For example, they have established API interaction with their clients, allowing them to offer near real-time reports to them, allowing them to access information more quickly.

In addition, they developed the RADMUS mobile app, which is an enterprise mobile app for safe end-to-end reconciliation.

Growth

Their integrated service and product offering has allowed them to shift their business mix toward giving more value-added services for their clients.

It allowing them to offer them more competitive pricing, more reliable service through a single point of accountability, improved route planning in advance, faster reconciliation, and increased client loyalty and reduced client turnover.

In 2020, their industry-leading EBITDA margin, ROCE, and ROE among organised players in the cash management services market illustrate their potential to do so.

For the three months ended June 30, 2021, Fiscal 2021, 2020, and 2019, their EBITDA margin was 19.40%, 22.20%, 22.15%, and 18.46%, correspondingly.

Radiant CMS IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Radiant CMS IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
December 2022	1
December 2022	2
December 2022	3

Management

We have a trained and dedicated leadership team led by Col. David Devasahayam, our Chairman and Managing Director and Promoter.

• Col. Benz K. Jacob, (Director Operations)
• Mr. SJS Swamidoss, (Director – Banking),
• Mr. Thinniyam Vaidyanathan Venkataramanan, (Chief Financial Officer)
• Mr. Karthik Sankaran, (Chief Technology Officer)
• Mr. Cyrus Shroff (Head-Business Development)

They all are backed up by a team of roughly 1,700 highly qualified and dedicated individuals .

Their key management professionals have experience and skills in business operations, risk management, logistics and route planning, finance, accounting, and financial service industry knowledge.

Promoters

• Col David Devasahayam
• Dr. Renuka David

Promoter’s Holding

Pre Issue Share Holding	62.79%
Post Issue Share Holding

Radiant CMS IPO Prospectus