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Initial Public Offer - Note

Issue Highlights:

Issuer: Security and Intelligence Services (SIS) Ltd

Issue Type: 100% Book Built Issue IPO

Issue Open: Monday, July 31, 2017

Issue Close: Wednesday, Aug 02, 2017

Issue Size (Rs)^: Fresh issue of shares aggregating to Rs.

362.25 crores and Offer for Sale of 51,20,619 equity shares.

Face Value: Rs.10 per Equity Share

Price Band: Rs. 805 – Rs. 815 per Equity Share

Minimum Order Quantity Retail: 18 Shares and in

multiples thereof

Maximum Bid amount for Retail: Rs. 2 Lakhs

Listing: NSE & BSE

Issue Size and Investor Category Allocation

Total Issue Size: 95,65,404 Equity Shares^

QIB: 75% of the issue size (71,74,054 Equity Shares^)

NIB: 15% of the issue size (14,34,810 Equity Shares^)

Retail: 10% of the issue size (9,56,540 Equity Shares^)

^ Upper Price Band

Book Running Lead Managers:

Axis Capital, ICICI Securities, IIFL Holdings, Kotak Mahindra

Capital, SBI Capital Markets, Yes Securities, IDBI Capital

Registrar:

Link Intime India Pvt Ltd

Key Business Strategies:

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

Key Strengths:

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

Objects of the Issue:

1. To achieve the benefits of listing the Equity Shares on the

Stock Exchanges and for the Offer for Sale of 51,20,619

Equity Shares.

2. General Corporate Purpose.

Public issue of 95,65,404 equity shares of Rs. 10/- each

(“equity shares”) of Security and Intelligence Services Ltd

(Company or Issuer).

About the Issuer:

It is a leading provider of private security and facility

management services in India. Portfolio of services includes

private security services, comprising of security services,

cash logistics services, electronic security services and

home alarm monitoring and response services along with

facility services.

It has developed 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.

It has deep geographical reach for manpower sourcing and

training and currently operates 17 training academies

across India and four training academies across Australia.

It has employed 133,551 personnel in India and rendered

security and facility management services at 10,224

customer premises across India.

Total revenue grew at a CAGR of 12.36% to Rs. 38,516.82

million for Fiscal Year 2016 from Rs. 24,161.11 million for

Fiscal Year 2012.

Revenue from Operations (Rs. Millions)

Net Profit After Tax (Rs. Millions)

5665.23

8069.03

10340.57

12736.78

02000400060008000

100001200014000

FY 13 FY 14 FY 15 FY 16

298.93332.15

246.38

339.08

0

100

200

300

400

FY 13 FY 14 FY 15 FY 16

Security and Intelligence Services Ltd



SUMMARY STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED




(Amount in Rupees millions unless otherwise stated)

Particulars Annexures As at March 31, 2016

As at March 31, 2015




Equity and Liabilities(A) Shareholders' funds

Share capital VI 62.00 61.75 61.75 213.30 213.30 Reserves and surplus VII 1,221.11 1,156.06 1,052.85 669.17 491.08

1,283.12 1,217.81 1,114.60 882.47 704.38 -

(B) Share application money pending allotment

(C) Non - current liabilities Long-term borrowings VIII 282.88 291.44 326.19 132.42 62.97 Long-term provisions X 243.18 188.23 145.05 108.52 66.22

526.06 479.67 471.24 240.95 129.19

(D) Current liabilities Short-term borrowings XI 1,546.85 1,149.24 751.72 674.75 636.57 Trade payables IX

Total outstanding dues of micro and small enterprises and

- - - - -

Total outstanding dues of creditors other than micro and small enterprises

70.93 103.53 65.20 50.64 39.06

Other current liabilities XII 1,400.46 1,290.45 1,038.25 985.00 737.91 Short-term provisions X 345.86 153.15 188.41 204.88 123.36

3,364.11 2,696.36 2,043.58 1,915.28 1,536.89

Total (A+B+C+D) 5,173.28 4,393.84 3,629.42 3,038.69 2,370.46

Assets(E) Non current assets

Fixed assets Tangible assets XIIIA 731.34 571.90 691.41 526.38 476.36 Intangible assets XIIIB 9.69 10.07 7.03 5.00 - Capital work-in-progress 0.00 66.69 66.66 54.45 48.19 Non-current investments XIV 552.46 508.92 424.76 392.10 392.10 Deferred tax assets (net) XV 199.19 198.02 100.92 77.79 66.55 Long-term loans and advances XVI 107.61 73.35 80.12 107.87 77.64

1,600.29 1,428.95 1,370.90 1,163.59 1,060.83 (F) Current assets

Inventories XVIII 0.00) 54.20 48.08 31.14 32.28 Trade receivables XIX 969.16 716.40 512.58 968.13 701.84 Cash and bank balances XX 218.86 388.42 431.86 308.85 216.55 Short-term loans and advances XVI 550.69 495.30 190.23 334.38 214.69 Other current assets XVII 1,834.28 1,310.57 1,075.77 232.60 144.27

3,572.99 2,964.89 2,258.52 1,875.10 1,309.62

Total (E+F) 5,173.28 4,393.85 3,629.42 3,038.69 2,370.46


Source

for

Note:

DRHP

IMPORTANT: Please read the Red Herring Prospectus of this issue carefully before investing in the same.

:: Research Desk :: :: Research Desk ::

E-mail:

[email protected]

Direct Ph: 040 3321 7132

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contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the

accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss

incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors.

Investors must make their own investment decisions based on their specific investment objectives and financial position

and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned

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associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this

document.

PF/IPON/24072017/31

SUMMARY STATEMENT OF PROFITS AND LOSSES, AS RESTATED




(Amount in Rupees millions unless otherwise stated)

Particulars Annexures For the year ended

March 31, 2016 For the year

ended March 31, 2015

For the year ended

March 31, 2014 For the year

ended March 31, 2013

For the year ended

March 31, 2012 RevenueRevenue from operations XXI 12,736.78 10,340.57 8,069.03 5,665.23 4,639.51 Revenue from operations 12,736.78 10,340.57 8,069.03 5,665.23 4,639.51 Other income XXII 136.44 222.30 175.91 161.50 9.33 Total revenue (A) 12,873.22 10,562.87 8,244.94 5,826.73 4,648.84 ExpensesEmployee benefits expense XXIII 11,344.05 9,148.47 6,954.57 4,712.25 3,627.72 Depreciation and amortisation expense XIIIA&B 210.31 245.70 110.80 90.49 116.08 Finance costs XXIV 206.61 251.43 128.50 146.99 140.39 Other expenses XXV 621.63 613.15 581.47 473.82 597.17 Total expenses (B) 12,382.59 10,258.75 7,775.34 5,423.54 4,481.36 Profit/(loss) before taxation (A-B) (C ) 490.64 304.12 469.60 403.18 167.48 Tax expense/(income)Current tax 152.72 147.25 160.58 115.49 89.01 Deferred tax charge/(credit) (1.17) (89.52) (23.13) (11.24) (32.07) Total tax expense (D) 151.56 57.74 137.45 104.25 56.95 Net profit/(loss) after taxation (C-D) (E ) 339.08 246.38 332.15 298.93 110.53 Net profit/(loss) for the period from discontinuing operationsProfit for the period from discontinuingoperations

- - - - 27.89 Tax expense of discontinuing operations - - - - 22.56 Profit/(loss) from discontinuing operations after tax

- - - - 5.33

Profit/(loss) for the year from continuing operations

339.08 246.38 332.15 298.93 105.20

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IPO - Karvy Value · PDF filetraining and currently operates 17 training academies across ... associate companies of Karvy accepts any liability arising from the use of this information