The company is selling its shares in the range of Rs 94-99 apiece between December 23-27, with a lot size of 150 equity shares and its multiples thereof. The offer comprises a fresh issue of Rs 60 crore and an offer for sale (OFS) of 3.31 crore equity shares.
According to the data from BSE, investors made bids for 4,19,250 equity shares or only 2% compared to 2,74,29,925 equity shares on offer by 12.00 noon on Friday, December 23.
The quota for retail bidders was booked 3%, whereas the allocations for non-institutional investors and qualified institutional bidders were not even off the mark yet.
Brokerage firms are majorly positive on the issue and are suggesting to subscribe to it, considering its valuations and business model. However, others are sceptical over the company due to rising competition.
The company is bringing the issue at a price band of Rs 94-99 per share and a P/E multiple of 17x on FY22 basis, said Hem Securities, with a subscribe rating on the issue.
“The company is a leading integrated cash logistics player in a consolidating industry, present across the value chain of retail cash management, with pan India and fast-growing end-user segments,” it added.
Ahead of its IPO, Radiant Cash Management raised Rs 116.38 crore from 16 anchor investors by allotting 1,17,55,681 shares at Rs 99 apiece, according to a BSE circular.
At the upper price band, the company is trading at a P/E of 27.83x with a market cap of Rs 1,062.4 crore post issue of equity shares and return on net worth of 27.3%, said Anand Rathi Research with an ‘avoid’ tag, citing rich valuations.
50% of shares are reserved for qualified institutional buyers (QIBs), whereas 15% of shares are reserved for non-institutional investors (NIIs). The remaining 35% of shares will be allotted to retail investors.
The growth in the organized retail sector as well as the corresponding outsourcing potential is expected to be prime factors for the development of the RCM market in India, said
‘s IPO note.
“Radiant has a track record of strong financial performance and delivering returns to shareholders. At the upper band, it is valued at a PE of 26.2x based on FY22 to its EPS of Rs 3.77,” it added with a subscribe rating for the issue.
, Investment Advisors and Yes Securities are the book-running lead managers of the issue, whereas Link Intime India has been appointed as registrar for the issue.
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