Radiant Cash Management IPO’s shares listing likely tomorrow. What GMP signals

As per market observers, Radiant Cash Management shares are commanding a premium (GMP) of ₹7 in the grey market today. Meanwhile, the company’s shares are expected to list on BSE, NSE this week week on Wednesday, January 4, 2023.

The ₹388-crore initial share-sale received bids for 1,45,98,150 shares against 2,74,29,925 shares on offer. The issue, which opened on December 23, had a price band of ₹94 to ₹99 a share for its ₹388-crore public offer.

The category meant for Qualified Institutional Buyers (QIBs) was fully subscribed, while non-institutional investors portion received 66% subscription and Retail Individual Investors (RIIs) 20%. 

Radiant Cash Management IPO had a fresh issue of up to ₹60 crore and an offer for sale (OFS) of up to 33,125,000 equity shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India.

Proceeds from the fresh issue component will be used for funding working capital requirements as well as capital expenditure requirements for purchase of specially fabricated armoured vans.

Incorporated in 2005, Radiant Cash Management Services Limited is the market leader in retail cash management services for banks, financial institutions, and organized retail and e-commerce companies in India.

The company offers a range of services under this segment consisting of collection and delivery of cash on behalf of its clients from the end user. In 2015, Ascent Capital had acquired 37.2% stake in the company.

IIFL Securities, Motilal Oswal Investment Advisors and YES Securities were the managers to the offer whereas Link In Time was the registrar of the share sale.