Security firm SIS plans Rs 1k-cr IPO

Mumbai: The company that protects historical monuments like Red Fort and Konark Temple, several of ONGC’s facilities, IITs, IIMs, the city’s airport and other places of national importance, is going public. Security and Intelligence Services (SIS) Group, a leader in security and business services in India, has filed an offer document with markets regulator Sebi for an IPO that could be worth about Rs 1,000 crore, valuing the company at over Rs 7,000 crore (about $1.1 billion).
This is expected to be the largest IPO in the business services segment, market sources said. Earlier in the year, Teamlease and Quess, both in the business services segment but with no presence in the security space, went public through IPOs worth Rs 424 crore and Rs 400 crore, respectively.
Of the total amount in the latest IPO, some part will be an offer for sale by CX Partners, a private equity investor in SIS Group since 2013, which could be worth about Rs 500 crore. The balance will be used by the company to retire high cost debt and to meet capital requirement in its business verticals. Earlier this year, CX Partners divested stakes through IPOs in Thyrocare Technologies and Ujjivan Financial Services.
SIS has a major presence in the areas of security services, cash logistics services, facilities management, pest control, electronic security and home security services. It is the second biggest operator in the security services segment and also in the cash logistics services segment.
Axis Capital, Kotak Mahindra Capital, ICICI Securities and SBI Caps are among the merchant bankers to the IPO.