The initial public offering (IPO) of Radiant Cash Management Services got a 53 per cent subscription on the third day of the bidding process. The initial share sale opened on December 23.
The initial share sale got bids for 1,45,71,450 shares against 2,74,29,925 shares on offer, as per BSE data.
The qualified institutional buyers (QIBs) category received 1.01 times subscription, non-institutional investors got┬а66 per cent bids and the retail individual investors’ portion was booked 20 per cent.
With a price band of Rs 94-99, the IPO comprised a fresh issue of 6,060,606 shares aggregating up to Rs 60 crore and an offer for sale (OFS) of 33,125,000 shares aggregating up to Rs 327.94 crore.
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Grey market premium
Last heard, Radiant Cash IPO commanded a grey market premium (GMP) of Re 1. It implied that the grey market expected a tepid listing for the company.
“The pricing seems to be identical to its listed competitors. However, the sector is facing headwinds due to digitization of transactions,” Manan Doshi of UnlistedArena.com, dealing in unlisted & pre-IPO shares, told Business Today.
Brokerage view
Choice Broking has assigned ‘subscribe with caution’ on the IPO; while Reliance Securities, Ventura Securities and Marwadi Financial Services have ‘subscribe’ ratings on the issue.
Lot size
Retail investors 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.
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.
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IIFL Securities, Motilal Oswal Investment Advisors and Yes Securities were the book-running managers. Link Intime was the registrar of the issue.
