Security and Intelligence Services [ IPO Research Report]

Security and Intelligence Services (SIS) is a private security solutions provider – second largest in India and Australia’s joint largest security service provider. It is based in New Delhi, India. It was set up in 1974.

SIS offers security services to bank, hotels, institutions, IT & ITES, residential colonies, Retail and commercial establishments.

It also offers electronic security systems, consulting, housekeeping and security services like pre employment verification & surveillance, Cash services which include transfer of cash and valuables and ATM replenishment and recruitment and training services.

They are also the second largest cash logistics company in India and with the recent acquisition of the Dusters, have become the 4th largest facility management company in India.

Today the SIS Group is present across all the 29 states in India.

BUSINESS SEGMENTS:

Security Services:

  • Security Services India
  • Security Services Australia
  • Cash Logistics Services
  • Electronic Security Solution
  • Alarm Monitoring and Response
  • Facility Management Services

Facility Management and Housekeeping:

  • Pest Control

PROMOTERS:

Ravindra Kishore Sinha:

Mr. Ravindra Sinha is the Chairman-cum-Managing Director of our Company. He has been associated with our Company since incorporation. At present, he is a Member of Parliament (Rajya Sabha) from Bihar.

Rituraj Kishore Sinha:

Mr. Rituraj Sinha, is the Group Chief Operating Officer of the Company. He initially joined the Company on July 8, 2002 as the Vice President (International Business Development) and was thereafter designated as the Chief Operating Officer.

 

INITIAL PUBLIC OFFER (IPO):

The SIS IPO will see private equity firm CX Partners sell part of its stake in the company through an offer for sale. The company will raise around Rs362 crore in primary capital to repay part of the company’s debt as well as to fund working capital requirements. The primary capital and offer for sale together will be worth around Rs 1,000 crore.

CX Partners, which invested in the company in 2013 and currently holds a 14% share, will be selling half its stake through the IPO.

SIS has hired Kotak Mahindra Capital Company Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, IIFL Holdings Limited, Yes Securities (India) Limited, IDBI Capital Markets & Securities Limited to manage the share sale.

Registrar: Link Intime India Private Limited


SHAREHOLDING PATTERN:


KEY MANAGERIAL PERSONNEL

RAVINDRA KISHORE SINHAChairman-cum-Managing Director:

UDAY SINGH Group CEO and whole-time Director:

He joined their Company as the Executive Vice President in October, 2002. He has been their CEO since 2004 and whole-time Director since August 6, 2012.

RITA KISHORE SINHAnon-executive Director

She has been associated with their Company since March 31, 1995. She has around 30 years of experience in the legal field and is presently enrolled with the Supreme Court Bar Association.

ARUN KUMAR BATRAIndependent Director

He has been associated with their Company since September 29, 2007 and as an Independent Director since September 29, 2014.

ASHOK KUMAR MATTOOIndependent Director

He has been associated with their Company since January 15, 2005 and as an Independent Director since September 29, 2014.

AMRENDRA PRASAD VERMAIndependent Director

He has been associated with their Company since January 11, 2013 and as an Independent Director since September 27, 2013.

 

INDUSTRY ANALYSIS:

(In INR Crore)


Security Service Industry:

MARKET SIZE

 (In INR Crore)


Manned Guarding Market

Cash Logistics Market

Electronic Security Service Market

Facility Management Industry:

  (In %)


Manned Guarding

Cash Logistics Market

Electronic Security Service Market

Facility Management Industry

COMPANY ANALYSIS

FINANCIAL OVERVIEW

 (All values are in INR Crore)


Revenue Overview

Expenditure Overview

Asset Overview

Debt Overview

Net Profit Overview

Note:

                1: Total Assets include Fixed Assets as theyll as Current Assets

               2: Total Debts include only Loans from Banks (both, long term and short term)

STATISTICAL OVERVIEW

 

BUSINESS STRATEGY:

They intend to grow their businesses, leveraging on the growth of private sector business entities due to:

1) Investments in infrastructure, manufacturing and services

2) Growth in demand of their services from Government organizations and from households due to an increase in the disposable income available with the Indian middle class.

They have established a nation-wide network in India, comprising of 76 branches, including shared branches, 2,511 cash routes served by 2,296 cash vans as well as two wheeler vehicles and 59 vaults and strong rooms, as of August 1, 2016, and they believe they are well positioned to capitalize on such growth.

They intend to use to their advantage their existing branch network in India to further grow their cash logistics and facility management services enabling them to rapidly tap market potential, thus increasing revenues, without incurring commensurate costs during the initial set up phase, thus increasing their operational margins.


PRODUCT ANALYSIS

(In INR Crore)

MAJOR INDUSTRY PLAYERS & COMPARISON

There is no other Security Service company which is listed on any stock exchange in India.

CONCLUSION:

They have developed a portfolio of services in order to cater to the needs of diverse consumer segments, including, business entities, Government organizations and households, and to leverage the growth and potential of such customer segments in India.

They are the second largest security services provider in India, in terms of revenue as of March 31, 2015, and the fastest growing security services provider in India, based on revenues for Fiscal Years 2010 to 2014, according to Frost & Sullivan.

They have an established system and process leading to a scalable business model. They are led by a well-qualified and experienced management team who have also gained relevant experience by working with global leaders in their respective business segments.

 

 

 

 

 

 

 

 

 

 

 



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