The initial public offering (IPO) of Security and Intelligence Services which opened on Monday was subscribed 0.38 times with investors bidding for 19.96 lakh shares of 53.16 lakh shares on offer. The issue did not receive any bids from qualified institutional buyers. High-net-worth individuals bid for 14,436 shares of the 14.43 lakh shares reserved for them, bidding 0.01 times.Retail investors bid for nearly 2.06 times or 19.81 lakh shares of the 9.62 lakh shares reserved.
Security and Intelligence Services on Friday raised Rs 350.81 crore ahead of its initial public offering. The company sold 43.04 lakh shares to 18 anchor investors at a rate of Rs 815 per piece.The initial public offering of Security and Intelligence Services is expected to help the company raise about Rs 780 crore. The issue has been priced in the range of Rs 805-815. The company will not receive any proceeds from the offer for sale. The company will use the proceeds of the fresh issue for repayment of a portion of its debts, funding working capital requirements, and general corporate purposes. The company posted a net profit of Rs 91.3 crore for the year ended March 2017, against a net profit of Rs 75.7 crore in the previous financial year.
Security and Intelligence Services is a provider of private security and facility management services in India. As of April 30, 2017, the company has 251 branches in 124 cities and towns in India. It employs 1.48 lakh personnel in India and renders security and facility management services at 11,869 customer premises across India. In Australia, they operate in eight states and employ 5,754 personnel servicing 245 customers. In 2017, companies raised Rs 14,026 crore through IPOs.Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products and S Chand and Company are some of the companies who completed their IPOs in the last seven months.