Radiant Cash Management Services, an integrated cash logistics player, and online education platform Veranda Learning Solutions have received the go ahead from capital markets regulator Sebi to float their initial public offerings (IPOs).
The two companies, filed their preliminary IPO papers with Sebi between October and November and obtained the observation letter during January 10-11, an update with Sebi showed on Tuesday. In Sebi parlance, issuance of observations letter implies go ahead for the IPO.
Going by the draft papers, Radiant Cash Management Services’ IPO comprises fresh issue of shares worth up to Rs 60 crore and an offer-for-sale (OFS) of 3 crore shares by promoter David Devasahayam and private equity firm Ascent Capital Advisors India. In 2015, Ascent Capital had acquired a 37.2 per cent stake in the company. Out of the fresh issue proceeds, Rs 20 crore will be used for funding working capital requirements and Rs 23.92 crore for capital expenditure requirements for purchase of specially fabricated armoured vans.
The Chennai-based company is an integrated cash logistics player with a leading presence in the retail cash management segment. Meanwhile, Veranda Learning Solutions Ltd is looking to raise Rs 200 crore through an initial share-sale, according to the draft red herring prospectus (DRHP). The IPO is the primary issuance of equity shares.
Proceeds of the public issue will be utilized towards repayment or pre-payment of loan, retirement of acquisition consideration of Edureka and growth initiatives. Veranda is a comprehensive 360-degree online education platform. It is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates professionals and corporate employees. The equity shares of both companies will be listed on BSE and NSE.
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