radiant cash management: radiant cash management IPO only registered 11% on monday
The company is selling its shares between Rs 94-99 per share from December 23 to 27, with a lot size of 150 equity shares. The offer includes a new issue of Rs 60 crore and an offering (OFS) of 3.31 crore units.
According to data from the BSE, investors placed bids for 29,77,050 equity shares or just 11% compared with the 2,74,29,925 units offered for registration by 5 p.m. Monday, the 26th. December.
The quota for registered retail contractors is 12%, while the quota for registered non-institutional investors is only 3%. The section for qualified institutional bidders was booked 16%.
Brokers are mostly active in this regard, suggesting to sign up for it, looking at valuations and business models. However, others are skeptical of the company due to increased competition and high valuations.
“The company is issuing shares at Rs 94-99 per share with a p/e ratio of 17x on a fiscal year 2022 basis. It is the leading integrated cash logistics company in the industry. consolidated presence across the retail cash management value chain with all of India and rapidly growing end-user segments,” said Hem Securities with a subscription rating to the matter.
“The RCM market is estimated to be worth Rs 6.8 billion in FY 2021 and is expected to reach a market size of Rs 20.4 Billion by FY 2027, growing at a CAGR of 20, 3%. The growth in the organized retail sector as well as the corresponding outsourcing potential is expected to be the key factors for the growth of the RCM market in India,” it added. Prior to the IPO, Radiant Cash Management had raised Rs 116.38 crore from 16 fixed investors by allocating 11755681 shares at Rs 99 per share, the BSE circular said.
At the higher end, the company is trading at a P/E of 27.83x with a market cap of Rs 1,062.4 crore after equity share issuance and a return on net worth of 27.3%, said Anand Rathi Research. , quotes rich valuations.
50% of the shares are reserved for qualified institutional buyers (QIBs), while 15% are for non-institutional investors (NII). The remaining 35% will be allocated to retail investors.
The growth in the organized retail sector as well as the corresponding outsourcing potential is expected to be a key factor for the growth of the RCM market in India, said
“Radiant has a strong track record of strong financial performance and shareholder returns. In the upper range, it is valued at a PE of 26.2x based on FY2022 with EPS of Rs 3.77”, it adds a subscription rating to the matter.
Investment advisor and lead manager on the matter, while Link Intime India has been appointed as the registrar for the matter.
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