Radiant Cash Management Services Ltd IPO

Key Points of Radiant Cash Management Services Ltd IPO - 

• Strengths

  1. Leading integrated cash logistics player in a consolidating industry present across the value chain of retail cash management.
  
  2. Pan India presence with strong network in Tier 2 and Tier 3+ locations and fast growing end user segments.
  
  3. Diversified client base with long standing relationship and ability to cross-sell value added services.
  
  4. Robust Operational Risk Management.
  
  5. Significantly built up technology to optimise operational profitability.

• Risks

  1. The business is highly dependent on the banking sector in India to generate revenues, and any changes within Indian banks that affects their utilisation of and demand for cash management services could affects the business and its operations.
  
  2. If one or more of the key customers were to suffer a deterioration in their business, cease doing business or substantially reduce its dealings with the, the revenues could decline.
  
  3. A decrease in the availability or use of cash as the predominant mode of payment in India could have an adverse effect on the business as cashless payments system gains traction.
  
  4. The currency demonetisation measures had a significant impact on the cash circulation in India and there is uncertainty whether similar unanticipated measures could be adopted, hence the future remains unpredictable.
  
  5. Given the large volumes of cash handled, the firm are exposed to various operational risks, including armed robbery, endcustomer or third-party fraud, theft or embezzlement by employees or, reporting errors, both deliberate and inadvertent, and failure to meet specific requirements under applicable service agreements for which we may incur penalty charges.