scorecardresearchRadiant Cash Management Services IPO subscribed 53% on Day 3; sees muted response from retails investors

Radiant Cash Management Services IPO subscribed 53% on Day 3; sees muted response from retails investors

Updated: 27 Dec 2022, 07:40 PM IST
TL;DR.
  • The company received bids for 1,46,27,700 shares against 2,74,29,925 shares on offer, according to data from the BSE.
The public offering was subscribed 4% on the first day, and about 11% on the second day.

The public offering was subscribed 4% on the first day, and about 11% on the second day.

The initial public offer (IPO) of Radiant Cash Management Services Ltd was subscribed only 0.53 times or 53 percent on the third day.

Qualified institutional buyers (QIB) oversubscribed the public offering while slightly more than half of the non-institutional investors' portion was subscribed. However, retail investors did not show much of interest, as per data available at 7:05 PM.

The public offering was subscribed 4 percent on the first day, and about 11 percent on the second day.

The IPO that opened for subscription on Friday, December 23, closed today. The company received bids for 1,46,27,700 shares against 2,74,29,925 shares on offer, according to data from the BSE.

The QIB's portion was subscribed 1.01 times. The company received bids for 79,34,550 shares against 78,37,121 shares on offer for this segment.

The retail investors' portion was subscribed 0.21 times or 21percent. The company received bids for 28,15,950 shares of the 1,37,14,963 on offer for this segment.

The non-institutional investors' portion was subscribed 0.66 times or 66 percent. The company received bids for 38,77,200 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 could 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.

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First Published: 27 Dec 2022, 07:40 PM IST