Radiant Cash Management lists at 6% premium over issue price

Shares of Radiant Cash Management Services made a decent debut at the exchanges on Wednesday, despite weakness in the domestic benchmarks. The stock got listed at Rs 99.30, a premium of 5.64 per cent over its issue price of Rs 94. Later, the scrip gained 15.37 per cent to hit a day high of Rs 108.45. 

On NSE, it started trading at Rs 103, up 9.57 percent from its issue price.

The initial public offering (IPO) of Radiant Cash Management Services got a 53 per cent subscription. The initial share sale concluded on December 27.

The qualified institutional buyers (QIBs) category received 1.01 times subscription, non-institutional investors got 66 per cent bids and the retail individual investors' portion was booked 20 per cent.

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The IPO finally sailed through after the company significantly reduced its offer-for-sale (OFS) component. The total offer size was reduced to Rs 250.76 crore, comprising fresh issuance of shares worth Rs 51.27 crore and an OFS of Rs 199.5 crore.

In addition, the final issue price was fixed at a lower price band Rs 94 per share, but the anchor book was subscribed at an upper price band of Rs 99.

Radiant Cash Management Services is an integrated cash logistics player with a leading presence in the retail cash management (RCM) segment of the cash management services industry.

It counts ICICI Bank, HDFC Bank, Citibank, Kotak Mahindra Bank, Yes Bank, Standard Chartered Bank, Deutsche Bank, State Bank of India (SBI), Axis Bank, and The Hongkong and Shanghai Banking Corporation Ltd as its key clients.

IIFL Securities, Motilal Oswal Investment Advisors and Yes Securities were the book-running managers. Link Intime was the registrar of the issue.

Lot size

Retail investors had placed bids for a minimum of 1 lot comprising 150 shares worth Rs 14,850 and a maximum of 13 lots or 1,950 shares worth Rs 1,93,050.

Brokerage view

Choice Broking had assigned 'subscribe with caution' on the IPO; while Reliance Securities, Ventura Securities and Marwadi Financial Services had recommended to 'subscribe'.

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