Radiant Cash Management Services IPO sold 2% on its first day, while retail quota sold 4%

Radiant Cash Management Services' initial public offering received bids for 5.76 lakh shares against an offer size of 2.74 crore shares, with buyers subscribing 2% on the first day of bidding on December 23.

Retail investors have purchased 4% of the allotted shares, while high net worth individuals (non-institutional investors) have bid for 9,300 shares out of a total of 58.77 lakh shares.

However, qualified institutional buyers (QIBs) have yet to invest in the offer. Half of the offer is set aside for QIBs, 15% for HNIs, and the remaining 35% for ordinary investors.

After raising Rs 116.38 crore through the anchor book on December 22, a day before the IPO's debut, the retail cash management services provider decreased its offer size to 2.74 crore shares from 3.91 crore.

The company expects to raise Rs 388 crore via the initial public offering, which would be priced between Rs 94 and Rs 99 per share.

The IPO consists of a fresh issuance of Rs 60 crore in shares and a Rs 328 crore offer for sale by the promoter and investors. This means that just 15% of the IPO funds will be used for the company, with the remainder going to selling stockholders.

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In addition to normal corporate reasons, the company intends to use fresh issue money for working capital requirements and the purchase of specially manufactured armoured trucks.

The promotion is set to expire on December 27.

This is the sixth public issue to go on sale this month, following Abans Holdings, Sula Vineyards, Landmark Cars, KFin Technologies, and Elin Electronics.