Security and Intelligent Services plans to raise Rs 1,000 crore via IPO

MUMBAI: Delhi-based security services provider Security and Intelligent Services (SIS) is looking to raise Rs 1,000 crore from the primary market, people close to the development said. The initial public offer could see Ajay Relan-founded private equity fund CX Partners get an exit from the company.

“CX Partners could exit the company completely when SIS gets listed. SIS could file for the IPO in the coming months,” a banker involved in the deal told ET.

CX Partners had invested around Rs 500 crore in SIS in 2012 when it bought around 14% stake from DE Shaw. The New York-based fund had invested about Rs 50 crore in 2008 and got 10 times return. The IPO is set to value SIS around $1billion (Rs 6,700 crore), the banker added.

SIS could appoint Axis Capital, Kotak Investment Banking and ICICI Securities as merchant bankers for the IPO. ET could not independently verify this. Emails to SIS and CX Partners did not elicit a response till press time.

According to the banker, the company has been seeing a healthy growth over the past few years. “The company has a compounded annual growth rate (CAGR) of around 30%. It has a total revenue of around Rs 4,000 crore,” he said.

Earlier in April, there were reports that SIS was looking to raise funds through a third round of private equity. Two investment bankers had told ET that Apax Partners and Baring Private Equity were approached for the deal, which was set to give an exit to CX Partners.

However, SIS had then denied any such development. Founded in 1974 by Ravindra Kishore Sinha, SIS is the biggest security services firm in India, according to its website. The company offers electronic security, guards and cash management services, besides consulting and security training.