Indian private security firm SIS India keen on raising equity for acquisition investments

Indian private security firm, SIS India Monday announced that it is planning a $100 million equity raising that will aid the firm in future acquisition investments. The Indian company said it is planning to raise the capital via private equity by diluting about 10% to 15% stake. The firm reiterated that it has its sights set on a number of future acquisitions and investments and the equity raising will come in handy in such undertaking.

In addition, SIS India is also planning to repay its debt that stood at about Rs 35.85 crore as of March last year. Currently, SIS India is controlled as follows; DE Shaw & Co, a hedge fund has a 14% stake that it acquired in SIS two years ago for about Rs 300 crore and is reportedly keen on exiting the company in the coming few months. In the financial year 2008/09, SIS India posted a turnover of Rs 200.42 crore with profits after tax that pegged at Rs 10.72 crore.

The Indian firm has hired NM Rothschild to look for potential investors for the planned disposal. SIS India is a provider of services ranging from manned guarding of sites to secured transportation of cash, corporate investigation assignments and integration of electronic security gadgets. Some of the firm’s customers are major industry players such as Tata Steel, Tata Motors, ICICI, Idea Cellular and Future Group.

Two years ago, SIS India took over Chubb Security Personnel, a guarding and patrol business division of United Technologies Corp, an Australian firm for an estimated $300 million. The Australian firm, United Technologies Corp, has divested its three arms namely Chubb Security Personnel, Chubb Mobile Services and MSS Security Group. The combined revenues for the three units pegged at $400 million and their acquisition by SIS India was undertaken in conjunction with DE Shaw.

SIS is also set to acquire Chennai-based SDB Cisco for around Rs.300 Cr. SDB Cisco is a Joint Venture between MAC Group and Singapore-based Certis Cisco. SIS Security clocked revenue of Rs 1,440 crore in 2009-10 and it plans to reach Rs 2,200 by 2012. Setup as Investigation firm almost 30 years ago, today the company has grown into a "Total Security Solutions Provider" offering manned guarding (MG), investigations (C&I), electronic security systems (ESS) and cash services (CS) to over 2500 corporate customers across 24 states in India.

24 Aug 2010.