The initial public offering (IPO) of Radiant Cash Management Services was subscribed 11 per cent on the second day of the bidding process today. The initial share sale, which opened on December 23, would conclude on December 27.
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.
The initial share sale got bids for 29,77,050 shares against 2,74,29,925 shares on offer by 5 pm on Monday, as per BSE data.
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The qualified institutional buyers (QIBs) category received a 16 per cent subscription, the retail individual investors portion was booked 12 per cent and non-institutional investors got a 3 per cent subscription.
Lot size
Retail investors can bid 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.
Grey market premium
Market participants said Radiant Cash IPO grey market premium (GMP) was seen around Re 1 today. It implied that the grey market expected a muted listing for the company.
“The company is valued at around 17 times its annualised FY23 earnings (post fresh issue). 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.
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IIFL Securities, Motilal Oswal Investment Advisors and Yes Securities are the book-running managers. Link Intime is the registrar of the issue.
