IPO Analysis

Radiant Cash Management Services IPO: Should you apply?

Radiant Cash Management Services, one of the largest retail cash management players, has come out with an IPO. Find out if it is a good buy.

Radiant Cash Management IPO | Key things to know before investing

About the company
It provides retail cash management services to banks, financial institutions and companies. These services include collecting cash on behalf of its client from end-users (cash-pick up), providing transit services to move cash from one point to another (cash-in-transit service), ensuring the physical quality of the cash (sorting through cash for soiled and counterfeit bills), and other services required for cash management.

Strengths:

  • It has a pan-India presence with a strong network in tier 2 and tier 3 cities. As of July 31, 2022, it covers 13,044 pin codes and serves all the districts in the country except Lakshadweep.
  • Diversified client base. The company has long-standing relationships with its clients, including some of India's largest foreign, private sector and public sector banks like HDFC Bank, Axis Bank, etc.

Weaknesses:

  • A decline in cash as a mode of transaction will impact the company's operations.
  • The company's operations are heavily dependent on the banking sector. Any downturn in the banking sector will have an adverse impact.

Disclaimer: This is not a stock recommendation. Do your due diligence before investing.

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