Radiant Cash Management Services IPO subscribed only 11% on Day 2; sees weak demand from NIIs and retail investors

The initial public offer (IPO) of Radiant Cash Management Services Ltd was subscribed only 0.11 times or 11 percent on the second day.

In comparison to the first day, the public offering received a slightly better response from qualified institutional buyers (QIB), retail investors, and non-institutional investors on the second day. The issue was subscribed 4 percent on the first day.

The IPO that opened for subscription on Friday, December 23, will close on Tuesday, December 27.

The company received bids for 29,77,050 shares against 2,74,29,925 shares on offer, according to data from the BSE.

The QIB's portion was subscribed 0.16 times or 16 percent. The company received bids for 12,23,700 shares of the 78,37,121 shares on offer for this segment.

The retail investors' portion was subscribed 0.12 times or 12 percent. The company received bids for 16,03,200 shares of the 1,37,14,963 on offer for this segment.

The non-institutional investors' portion was subscribed 0.03 times or 3 percent. The company received bids for 1,50,150 shares against 58,77,841 on offer for this segment, while the employees' portion did not receive any response.

According to an exchange filing, the company has garnered ₹116.38 crore from anchor investors. On Thursday, December 22, the company informed the bourses that it allocated 1,17,55,681 shares at ₹99 per share to anchor investors.

Anchor investors include HDFC Trustee, Aditya Birla Sun Life Trustee, Emerging Business Fund, Alchemy Emerging Leaders of Tomorrow, Citigroup Global Markets, Dovetail India Fund, Societe Generale, BNP Paribas Arbitrage, UTI Mutual Fund, and Saint Capital Fund.

Out of the total allocation of 1,17,55,681 equity shares, 32,32,800 equity shares (27.50 percent of the total allocation to anchor investors) were allocated to three domestic mutual funds through a total of 5 schemes.

The company has fixed the price band at ₹94 to 99 per equity share for the proposed initial public offer.

Investors can bid for a minimum of 150 equity shares and in multiples thereafter.

The public offering, which has a face value of 1 rupee per equity share, consists of a fresh issue of shares worth ₹60 crore and an offer for sale (OFS) by existing shareholders of up to 3.31 crore equity shares.

IIFL Securities Limited, Motilal Oswal Investment Advisors Limited, and Yes Securities (India) Limited are the book running lead managers.

The equity shares are proposed to be listed on BSE and NSE.