Security and Intelligence Services today said it will launch an IPO on Monday and expects to raise up to Rs 780 crore, a part of which will go towards debt repayment.
Security and Intelligence Services (India) Ltd (SIS) today said it will launch an IPO on Monday and expects to raise up to Rs 780 crore, a part of which will go towards debt repayment. SIS has set Rs 805-815 per share as the price band for the initial public offer (IPO) that closes on August 2. The IPO comprises a fresh issue of equity shares valuing up to Rs 362.25 crore and an offer for sale of up to 5,120,619 equity shares to be diluted by investors and promoters, the company said at a press conference here today. In a break-up for the offer for sale, SIS Group CEO Uday Singh said investors — Theano Private Ltd and AAJV Investment Trust — are completely exiting by selling their entire stake-holding of 3,402,764 equity shares and 68,336 shares respectively.
In the promoter selling shareholders, Chairman Ravindra Kishore Sinha will dilute up to 786,517 shares in the IPO; Rituraj Kishore Sinha 524,345 shares. Other selling the stake have put on the block up to 338,657 equity shares. Bids can be made for a minimum of 18 equity shares and in multiples thereafter, SIS said. “The Indian security market is worth Rs 40,000 crore which is largely fragmented with not more than 15 big players. There is enough headroom for us to grow in a faster pace,” Singh said. Of the over Rs 362 crore of the primary proceeds from the IPO, the company will use about Rs 200 crore for high cost equipment financing and to retire high cost debt that will help improve company’s profit after tax (PAT) and earnings per share (EPS), said Rituraj Kishore Sinha, the Group Managing Director of SIS.
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Rest of Rs 160 crore from the primary proceeds will be used for growth and general corporate purpose, he added. Axis Capital, ICICI Securities, IIFL Holdings, Kotak Mahindra Capital Company are global coordinators and book running lead managers to the issue. SBI Capital Markets, IDBI Capital Markets and Securities and Yes Securities (India) are merchant bankers to the issue. SIS said it ranks second in terms of security services solutions in India and has a number one spot in Australia. It also offers cash logistics and facility management services.
Security services include security design and solutions, fire safety, event security, VIP protection, aviation security, emergency response, investigation work and integrated technology solutions providing man-tech solutions. Cash logistics pertains to cash in-transit, doorstep banking, ATM-related services, bullion and cash vaulting services. Facility management offers housekeeping services, janitorial support; heating, ventilation and air conditioning (HVAC) repairs and pest control.