Tender Offer | ₹90.00 Crores | Listed at BSE, NSE | Mon, Dec 18, 2023 - Fri, Dec 22, 2023
SIS Ltd. Buyback is a tender offer for the repurchase of up to 0.16 crore equity shares, representing 1.12% of the total paid-up equity share capital at a buyback price of ₹550 per share with a face value of ₹5 per share, aggregating to ₹90.00 crores.
The record date for determining eligible shareholders is Dec 12, 2023. Shareholders holding equity shares as on the record date are eligible to participate in the buyback.
The buyback opens on Dec 18, 2023 and closes on Dec 22, 2023, with the last date for receipt of tender forms being Dec 22, 2023.
The finalisation of buyback acceptance is expected on Dec 29, 2023, followed by settlement of bids on Jan 1, 2024.
Dam Capital Advisors Ltd. is the Manager to the Buyback and MUFG Intime India Pvt.Ltd. is the Registrar and DAM Capital Advisors Limited is the Registered Broker to the Buyback.
Investors are advised to refer to the SIS Ltd. Letter of Offer for detailed information, including eligibility criteria, entitlement ratio, acceptance methodology, and tax implications.
Offer Opening Date
Mon, Dec 18, 2023
Offer Closing Date
Fri, Dec 22, 2023
Buyback Price
₹550 per share
Record Date
December 12, 2023
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 13 Equity Shares out of every 97 Fully paid-up Equity Shares held on the Record Date. | 255,455.00 |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 207 Fully paid-up Equity Shares held on the Record Date. | 1,380,908.00 |
SIS Limited's revenue increased by 12.53% and profit after tax (PAT) dropped by -1.82% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 | 31 Mar 2020 |
| Assets | 5,712.70 | 5,096.27 | 5,039.82 | 4,652.12 |
| Revenue | 11,378.52 | 10,111.76 | 9,605.10 | 8,538.31 |
| Profit After Tax | 346.50 | 352.93 | 367.21 | 225.45 |
| Net Worth | ||||
| Reserves and Surplus | 2,206.51 | 1,933.67 | 1,351.81 | 1,195.19 |
| Total Borrowing | ||||
| Amount in ₹ Crore | ||||
Incorporated in 1986, SIS Limited offers security, facility management, and cash logistics services.
The company provides Electronic Security Solutions, Alarm, Monitoring and Response services, ATM replenishment solutions, currency management, Cash Pick-Up and Delivery, Precious Cargo, Bullion Management and Vaulting, Automated systems and world-class technology, On-Site and Off-Site Cashiers and Cleaning and repair-related services.
As of March 31, 2023, the company has over 2,83,322 employees, 70,917 Customer sites, and over 21,471 Customers served across India. The company's clientele comes from the Asia-Pacific (APAC) region, encompassing India, Australia, New Zealand, and Singapore.
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Nov-2023 | 490.35 | 413.85 | 442.32 |
| Oct-2023 | 485.00 | 400.25 | 444.04 |
| Sep-2023 | 482.60 | 415.35 | 441.93 |
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Nov-2023 | 491.00 | 412.15 | 442.55 |
| Oct-2023 | 485.50 | 400.00 | 444.19 |
| Sep-2023 | 482.35 | 420.25 | 442.17 |
The Buyback is being undertaken, among other things, for the following objects:
(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
(ii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be repurchased whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
(iii) The Buyback may help in improving return on equity, by the reduction in the equity base, thereby leading to a long-term increase in shareholders' value; and
(iv) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash instead of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
(v) The Buyback may lead to reduced outstanding Equity Shares, improved earnings per equity share, and enhanced return on equity. The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations and for continued capital investment, as and when required
SIS Ltd.
Annapoorna Bhawan,
Patliputra Telephone Exchange Road,
Kurji, Patna - 800 010
Patna, Bihar, 800010
Lead Manager(s)
Registered Broker
The SIS Buyback 2023 opens on December 18, 2023, and closes on December 22, 2023.
Last date to be eligible to participate in buyback is December 11, 2023.
The SIS Buyback 2023 is a Tender Offer.
SIS Buyback 2023 Schedule
| Buyback Opening Date | December 18, 2023 |
| Buyback Closing Date | December 22, 2023 |
| Last Date for receipt of Tender Forms | December 22, 2023 |
| Finalisation of Buyback Acceptance | December 29, 2023 |
| Last Date for settlment of bids | January 1, 2024 |
| Last Date for Extinguishment of Shares | January 10, 2024 |
The SIS Buyback 2023 is being offered at Rs ₹550 per share.
| Category | Entitlement Ratio of Buyback | Shares Offered |
|---|---|---|
| Reserved Category for Small Shareholders | 13 Equity Shares out of every 97 Fully paid-up Equity Shares held on the Record Date. | 255,455.00 |
| General Category for all other Eligible Shareholders | 2 Equity Shares out of every 207 Fully paid-up Equity Shares held on the Record Date. | 1,380,908.00 |
The issue size of SIS Buyback 2023 is 16,36,363 equity shares at ₹550 per share aggregating up to ₹90.00 Crores.
The Buyback is being undertaken, among other things, for the following objects:
(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
(ii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve the allocation of several Equity Shares as per their entitlement or 15% of the number of Equity Shares to be repurchased whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as "small shareholders" as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
(iii) The Buyback may help in improving return on equity, by the reduction in the equity base, thereby leading to a long-term increase in shareholders' value; and
(iv) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash instead of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
(v) The Buyback may lead to reduced outstanding Equity Shares, improved earnings per equity share, and enhanced return on equity. The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations and for continued capital investment, as and when required
All the eligible Shareholders of the Company holding either Physical Shares or Demat Shares as on the Record Date can participate in the buyback offer through their Stock Broker.
The eligible shareholder holding the shares in Demat form needs to inform their broker the details of the Equity shares they wish to tender in the Buyback Offer. The shareholder needs to transfer the tendered shares to a Special account of the clearing corporation. The broker, in turn, would place an order on the stock exchange for the buyback.
The eligible shareholder holding the shares in physical form needs to approach their broker with original share certificates and supporting documents. Upon completion of document verification, the broker places an order on the stock exchange and submits the original share certificate and TRS to the registrar.
The tender form and TRS are optional in the case of Demat shares but mandatory in the case of physical shares.
The SIS Buyback 2023 offers an opportunity for the shareholders to exit their positions at a premium price. In case you stay invested you would have an increased percentage of shareholding in the company and improved earnings per share. Thus, one should understand the company fundamentals along with one's need, goals, and risk appetite to decide if one wants to stay invested or participate in the buyback offer.
