07-Dec-2023
2 mins read
Security and Intelligence Services (India) Limited has got final approval from its board to propose a buyback offer of 1,636,363.00 equity shares (representing 1.12% of the total number of equity shares in the paid-up share capital of the Company) through the tender offer route. The buyback amount is Rs 90.00 Crores and the buyback price is Rs 550 per equity share.
Security and Intelligence Services (India) Limited Company’s Profile
Established in 1986, SIS Limited is a renowned provider of a diverse range of services, specializing in security, facility management, and cash logistics solutions.
Service Offerings: SIS Limited offers a comprehensive suite of services that includes Electronic Security Solutions, Alarm Systems, Monitoring and Response services, ATM replenishment solutions, currency management, Cash Pick-Up and Delivery services, handling Precious Cargo, Bullion Management and Vaulting, Automated systems with cutting-edge technology, On-Site and Off-Site Cashiers, and Cleaning and Repair services.
Operational Reach: As of March 31, 2023, SIS Limited boasts an extensive operational footprint. With over 2,83,322 dedicated employees, the company serves an impressive 70,917 customer sites. Its clientele exceeds 21,471 customers, encompassing various sectors across India.
Geographical Presence: SIS Limited caters to a wide-ranging clientele primarily situated in the Asia-Pacific (APAC) region. Its services extend to countries such as India, Australia, New Zealand, and Singapore, reflecting the company’s regional prominence and reach.
SIS Limited’s commitment to excellence in providing security, facility management, and cash logistics services is evident through its expansive workforce, numerous customer sites, and a broad client base across the Asia-Pacific region.
Important Details for Security and Intelligence Services (India) Limited Buyback 2023
| Last Date to buy shares | 11-Dec-23 |
| Record Date | 12-Dec-23 |
| Issue Period | Yet to be announced |
| Security Name | Security and Intelligence Services (India) Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 1,636,363.00 |
| Issue Size (Amount) | Rs 90.00 Crores |
| Buyback Price | Rs 550 per share |
| Face Value | Rs 5 per share |
| Listing At | BSE, NSE |
Objective of Security and Intelligence Services (India) Limited Buyback
The Buyback is intended for the following purposes:
(i) Facilitating the return of excess cash to shareholders holding Equity Shares, thereby boosting the overall returns for shareholders in proportion to their holdings.
(ii) The Buyback, conducted through the tender offer route under SEBI Buyback Regulations, includes allocating a portion of Equity Shares either based on entitlement or 15% of the repurchase quantity, whichever is higher, specifically reserved for small shareholders. This reservation aims to benefit a significant number of public shareholders categorized as “small shareholders” as per Regulation 2(i)(n) of SEBI Buyback Regulations.
(iii) Potentially enhancing return on equity by reducing the equity base through the Buyback, ultimately contributing to long-term shareholder value.
(iv) Providing shareholders holding Equity Shares with the choice to participate in the Buyback offer to receive cash in exchange for their shares or to opt-out and experience a subsequent increase in their percentage ownership post the Buyback, without additional investment.
(v) Expected outcomes from the Buyback include a decrease in outstanding Equity Shares, potentially boosting earnings per equity share and improving return on equity. Importantly, the Buyback will not hinder the Company’s ability to pursue growth opportunities or meet cash requirements for ongoing business operations and future capital investments when necessary.
Lead managers for Security and Intelligence Services (India) Limited Buyback
The Lead manager of the Security and Intelligence Services (India) Limited Buyback is Dam Capital Advisors Ltd (Formerly Idfc Securities Ltd).
Registrar of the Security and Intelligence Services (India) Limited Buyback
Registrar of the Security and Intelligence Services (India) Limited Buyback is Link Intime India Private Ltd.
Security and Intelligence Services (India) Limited Financial Information (Consolidated Rs in Crore)
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 |
| Assets | 5,712.70 | 5,096.27 | 5,039.82 | 4,652.12 |
| Revenue | 11,378.52 | 10,111.76 | 9,605.10 | 8,538.31 |
| Profit After Tax | 346.5 | 352.93 | 367.21 | 225.45 |
| Reserves and Surplus | 2,206.51 | 1,933.67 | 1,351.81 | 1,195.19 |
FAQs
- What is the buyback price per share?
The buyback price per equity share is Rs 550.
- How many shares are being purchased in the buyback?
Security and Intelligence Services (India) Limited will buy back 1,636,363.00 equity shares, which represents 1.12% of the total number of equity shares in the company’s paid-up share capital.
- How much is the total amount allocated for the buyback?
The total buyback amount is Rs 90.00 Crores.
- How will the buyback process take place?
The buyback will be conducted through the the tender offer route. Shareholders who wish to participate can tender (offer) their shares at the buyback price of Rs 550 per share.
- What is the face value of Security and Intelligence Services (India) Limited’s shares?
The face value of the company’s shares is Rs 5 per share.
- Is it mandatory for shareholders to participate in the buyback?
No, participation in the buyback is entirely voluntary. Shareholders can choose whether or not to tender their shares in the buyback offer.