Radiant Cash Management Services has submitted documents with market regulator SEBI to raise funds from the IPO. In the IPO, new shares worth Rs 60 crore will be issued and there will be an offer for sale (OFS) of about 3.01 crore shares by the promoters and existing shareholders.
Col David Devashyam will sell around 1.01 crore shares and Ascent Capital Advisors will sell up to 20 million shares in OFS. Devashyam currently holds 54.40 per cent and Ascent Capital has 37.22 per cent stake in the company.
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Of the funds from the IPO, Rs 20 crore will be used for working capital requirements.
Radiant Cash Management Services handles an average cash volume of Rs 400 crore per day. On long weekends, this figure rises to around Rs 1,000 crore. The increase in working capital will help the company enhance its ability to handle higher cash volumes.
The company also plans to buy 220 specially fabricated armored vans. About Rs 24 crore will be spent on this. The company currently has 694 such vans.
Motilal Oswal, IIFL Securities and Yes Securities are the lead managers for the IPO.
Radiant Cash Management Services is one of the major players in the retail cash management segment.
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