Security services firm Security and Intelligence Services India Ltd (SIS India) has filed draft prospectus for its upcoming IPO with the Indian capital market regulator SEBI. The New Delhi-based company plans to raise INR362.25 crore (INR3.62 billion) by issuing new shares while existing shareholders will also sell 6,518,876 shares through an offer for sale (OFS). Among the shareholders participating in SIS India IPO are Theano (3,431,282 shares), AAJV (68,937 shares) while promoters Ravindra Kishore Sinha (1,760,000 shares) and Rituraj Kishore Sinha (920,000 shares) will also sell some of their stakes.
Pricing of SIS India IPO will be finalized at a later stage but sources say the IPO could end up mobilizing nearly INR1,000 crore (INR10 billion), valuing the company at nearly INR7,000 crore (INR70 billion). The IPO will be managed by Axis Capital, Kotak Mahindra Capital, ICICI Securities, IIFL Holdings, Yes Securities, SBI Caps, and IDBI Capital Markets while Link Intime will be the registrar.
Proceeds from SIS India IPO will be used towards repayment and pre-payment of outstanding indebtedness, funding working capital requirements, and general corporate purposes. Out of the INR362.25 crore (INR3.62 billion), the company plans to use INR200 crore (INR2 billion) towards debt reduction while INR60 crore (INR600 million) will be used to augment working capital.
CX Partners to part exit through SIS India IPO
Both Theano and AAJV are investment vehicles of CX Partners. Through Theano, CX Partners holds 10,439,770 shares or 15.2% equity stake in the company.
SIS India will be the third company in which CX Partners will offload its shareholding in recent times. Earlier this year, the private equity firm got its portfolio companies Thyrocare Technologies and Ujjivan Financial Services listed on the stock exchanges.
In its prospectus, the security company said it posted revenue of INR3,851.6 crore (INR38.51 billion) for the year ended 31 March 2016 and earned a profit of INR7.43 crore (INR743.56 million) with both figures up from previous financial year.
Established in 1974, the security firm has nationwide presence in India and Australia. Apart from security services, SIS India offers cash logistics services, facilities management, pest control, and electronic security.