Private Security Firm SIS India Plans To Raise $100 Mn PE

Private security firm SIS India is raising $100 Mn through PE by diluting 10-15% stake to fund its future acquisition plans.

It also plans to rapay debt which was Rs.35.85 Cr as on March 2009.

Hedge fund DE Shaw & Co currently holds 14% in SIS which it bought in 2008 for around Rs 300 Cr ($75 mn) and plans to exit the firm in next few months.

SIS India (Security and Intelligence Services India Ltd) reported a turnover of Rs.200.42 Cr in 2008-09 with a PAT of Rs.10.72 Cr.

The company has hired NM Rothschild to bring in the investors.

Transaction Reference: Financial Express

SIS was started by first-generation entrepreneur Ravindra Kishore Sinha in 1974. SIS offers a whole range of services from manned guarding of sites to secured transportation of cash, corporate investigation assignments to integration of electronic security gadgets. Some of its clients include Tata Steel, Tata Motors, ICICI, Idea Cellular and Future Group.

In 2008, SIS acquired Chubb Security Personnel, the guarding and patrol business unit of Australia-based United Technologies Corp (UTC) for $300 Mn. UTC has divested its three arms - Chubb Security Personnel, Chubb Mobile Services and MSS Security Group. The units had revenues of $400 mn. SIS had partnered with DE Shaw for this acquisition.

SIS is also set to acquire Chennai-based SDB Cisco for around Rs.300 Cr. SDB Cisco is a 60:40 JV between MAC Group and Singapore-based Certis Cisco.

Apart from SIS, the other major players in Indian security market are Topsgrup and Group 4 Securicor.

Topsgrup was the first Indian security firm to make an overseas acquisition when it acquired 51% stake in British security firm, The Shield Guarding Company Ltd, for Rs.125 Cr. It had received PE funding from ICICI Venture, Indivision, a fund of the Future Group, and from Rakesh Jhunjhunwala.

GoI is planning to bring down FDI limited in this sector to 49% from the current 100%. The Union home ministry has now stepped in to limit their participation in Indian companies citing security reasons.

According to recent article in Financial Express Indian private security industry, which is growing at 25% annually, employs over 7 mn people.

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November 06, 2010 01:13 PM

I LIKE TO SECURITY SUPERVISOR I COMPANY WORKED IN 5YEAR IN S.G RANK THANKS REGARDS SAILESH . - Posted by sailesh kumar Recommended by 0 Readers