Radiant Cash Management IPO Details

Radiant Cash Management is planning to go public through an initial public offering (IPO) on the stock exchange. The IPO will consist of the sale of 39,185,606 equity shares, with a face value of INR 1 each, for a total value of INR 387.94 Crores (approximately $53.3 million). The shares will be priced at INR 94 to INR 99 each, and the minimum order quantity is 150 shares.

The IPO will be open for subscription from December 23 to December 27, 2022, and will be managed by Link Intime India Private Ltd. After the IPO, the shares of Radiant Cash Management are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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About Radiant Cash Management

Radiant Cash Management is a company that provides cash management services to businesses in India. This includes handling and transporting money, as well as other related tasks. The company has a wide network of locations and touchpoints across the country, covering almost all districts except for Lakshadweep.

It serves a variety of clients, including major banks and e-commerce companies. In the fiscal year 2021, Radiant Cash Management handled a total of INR 912.22 billion (approximately $12.4 billion) in currency movement. The company has a strong track record of financial performance, with high margins, returns on equity and capital, and other indicators of success.

The IPO will take place from December 23 to December 27, 2022.
The face value of each share is INR 1.
The shares will be priced at INR 94 to INR 99 per share.
The minimum order quantity is 150 shares.
The IPO consists of 39,185,606 shares, with a total value of INR 387.94 Crores (approximately $53.3 million).
A portion of the IPO, 6,060,606 shares, is a fresh issue, while the remaining 33,125,000 shares are being offered for sale by the company promoters.
The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO is being managed by Link Intime India Private Ltd.
The promoters of Radiant Cash Management are Col. David Devasahayam and Dr. Renuka David.

Objectives of the IPO

The net proceeds of the fresh issue in the Radiant Cash Management IPO will be used for the following purposes:

Funding working capital requirements: Working capital refers to the money needed to cover the day-to-day expenses and operations of a business. These can include things like employee salaries, rent, utilities, and other operating costs. The net proceeds from the fresh issue will be used to fund these types of expenses.
Funding of capital expenditure requirements for the purchase of specially fabricated armoured vans: Capital expenditure refers to money spent on long-term assets, such as buildings, machinery, and vehicles. In this case, the net proceeds will be used to purchase specially fabricated armoured vans, which are vehicles designed to transport and protect large amounts of money.
General corporate purposes: The net proceeds from the fresh issue may also be used for other general corporate purposes, such as investments in research and development, marketing and advertising, and other business-related expenses.

Overall, the IPO is intended to raise money that will be used to support the growth and operations of Radiant Cash Management.

Radiant Cash Management Fundamentals

Earnings per share (EPS): This is a measure of a company’s profitability, calculated by dividing the company’s net income by the number of outstanding shares of stock. Radiant Cash Management’s EPS has been steadily increasing over the past few years, with a value of INR 2.47 in FY 2019, INR 3.60 in FY 2020, INR 3.20 in FY 2021, and an estimated INR 3.77 in FY 2022.
Price-to-earnings (PE) ratio: This is a measure of how much investors are willing to pay for a company’s earnings. It is calculated by dividing the company’s current stock price by its EPS. The PE ratio for Radiant Cash Management is not available for the past few years, but is estimated to be between INR 24.93 and INR 26.26 in FY 2022.
Return on net worth (RONW): This is a measure of a company’s profitability, calculated by dividing the company’s net profit by its net worth (total assets minus total liabilities). Radiant Cash Management’s RONW has been steadily increasing over the past few years, with a value of 23.66% in FY 2019, 30.53% in FY 2020, 25.52% in FY 2021, and an estimated 27.34% in FY 2022.
Net asset value (NAV): This is a measure of a company’s net worth, calculated by dividing the company’s total assets by its total number of outstanding shares of stock. The NAV for Radiant Cash Management is not available for the past few years, but is estimated to be INR 12.55 in FY 2021 and INR 13.80 in FY 2022.
Return on capital employed (ROCE): This is a measure of a company’s profitability, calculated by dividing the company’s operating profit by its capital employed (total assets minus current liabilities). Radiant Cash Management’s ROCE has been steadily increasing over the past few years, with a value of 23.66% in FY 2019, 37.91% in FY 2020, 33.33% in FY 2021, and an estimated 33.07% in FY 2022.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin: This is a measure of a company’s profitability, calculated by dividing the company’s EBITDA by its total revenue. Radiant Cash Management’s EBITDA margin has been steadily increasing over the past few years, with a value of 18.46% in FY 2019, 22.15% in FY 2020, 22.20% in FY 2021, and an estimated 20.73% in FY 2022.
Debt-to-equity ratio: This is a measure of a company’s financial leverage, calculated by dividing its total debt by its shareholder equity. Radiant Cash Management’s debt-to-equity ratio has been steadily decreasing over the past few years, with a value of 0.17 in FY 2019, 0.18 in FY 2020, 0.11 in FY 2021, and an estimated 0.21 in FY 2022.

Conclusion

Radiant Cash Management is a financially stable and successful company with a strong track record of growth and profitability. The company has consistently increased its earnings per share, return on net worth, and return on capital employed, and has maintained a relatively low debt-to-equity ratio. Additionally, the company has experienced an increase in its earnings before interest, taxes, depreciation, and amortization margin over the past few years.

These financial metrics suggest that Radiant Cash Management is a well-managed company with a solid foundation for future growth. The upcoming IPO, which is expected to raise significant funds for the company, could further support this growth and help Radiant Cash Management continue to thrive in the cash management services industry.