Security and Intelligence Services (India) Limited is provider of private securities and facility management services in India as well as in Australia too. Security and Intelligence Services (India) Limited are coming up with an IPO. They are going to introduce their initial public offer which will hit the primary market on 31st July, 2017 and closes on 2nd August 2017. The company aims to raise around Rs.362.25 crore by offering shares at Rs 810 – Rs 815 Per Equity Share. For this issue offer for sale is of 5,120,619 Equity Shares.
Security and Intelligence Services (India) Limited was incorporated as ‘Security and Intelligence Services (Eastern India) Private Limited’ on January 2, 1985 at Patna. They are the provider of services like facility management and private security. Their portfolio of services includes:
- Private Security Services
- Security services: – They provide a comprehensive range of security services ranging from providing trained security personnel for general guarding to specialized security roles in India and Australia. In Australia, they also provide paramedic and allied health, fire rescue services, mobile patrol, loss prevention and other related services.
- Cash logistics services:- Their cash logistics business in India includes services such as cash in transit including transportation of bank notes and other valuables, doorstep banking as well as cash processing, ATM related services including ATM replenishment, first line maintenance and safekeeping, and vault related services for bullion and cash.
- Electronic security services and home alarm monitoring and response services:- In India, they provide electronic security services, including integrated and turnkey electronic security and surveillance solutions combining electronic security with trained manpower and have recently entered into a joint venture in order to provide home alarm monitoring and response services.
- Facility Management Services – Their facility management services in India include cleaning, janitorial services, disaster restoration and clean-up of damage, as well as facility operation and management such as deployment of receptionists, lift operators, electricians and plumbers, and also pest and termite control.
They have branch network consisting of 251 branches in 124 cities and towns in India, which cover 630 districts. They employed 148,678 personnel in India and rendered security and facility management services at 11,869 customer premises across India. In Australia, they operate in each of the eight states and employed 5,754 personnel servicing 245 customers, as of April 30, 2017. Their branch network enables them to service a large number of customer premises and render customized services across India and Australia.
The company’s server’s customers operate in various industries and sectors, which include banking and financial services, IT/ITeS and telecom, automobile, steel and heavy industries, governmental undertakings, hospitality and real estate, utilities, educational institutions, healthcare, consumer goods, engineering, and construction.
They have entered into strategic relationships in India with several multinational companies like:-
For our cash logistics and alarm monitoring and response businesses, they have entered into joint ventures with affiliates of Prosegur Compañía de Seguridad, S.A (“Prosegur”), a global player in cash management and alarm monitoring. they have also entered into a joint venture with an affiliate of Terminix International Company, L.P. (“Terminix”), a multinational provider of termite and pest control services. In addition, they have licensed the ‘ServiceMaster Clean’ brand, and associated proprietary processes, operating materials and knowhow for their facility management business in India from The ServiceMaster Company, LLC (“ServiceMaster”) group, a commercial and residential cleaning service provider.
They have geographical reach for manpower sourcing and training and currently operate 18 training academies across India and four training academies across Australia.
- Diverse portfolio of private security and facility management services.
- Leader in providing security services in India and Australia
- Second largest cash logistics service provider in India
- Leading position in facility management services in India
- Widespread and integrated branch network in India
- Diverse customer base
- Established systems and processes leading to a scalable business model
- Experienced management and operational team
- Grow businesses across customer segments
- Use and upgrade technology to improve productivity and customer satisfaction
- Leverage existing branch infrastructure to achieve operational synergies
- Inorganic growth through strategic acquisitions
The financial performance for last 5 year is as shown above. Earning for FY17 was around Rs. 13. For last five fiscals, it has reported CAGR of 14.6% in revenues and 4.5% in EBITDA margins. There seems to be a lot of potential to grow in this segment in India. Based on the earning of Rs 13 and price of share offer at 815, the P/E comes out to be around 62. There is no peer company which work in the same segment.
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