SIS Limited Buyback 2021

Security & Intelligence Serv.(India)is directly and indirectly engaged in rendering security and related services consisting of manned guarding, training, and indirectly engaged in paramedic and emergency response services; loss prevention, asset protection and mobile patrols; facility management services consisting of cleaning, housekeeping and pest control management services in the areas of facility management; cash logistics services consisting of cash-in-transit, ATM cash replenishment activities and secure transportation of precious items and bullion; and alarm monitoring and response services consisting of trading and installation of electronic security devices and systems through its subsidiaries, joint ventures and associates. They are a trusted leader across these business segments in India and other geographies in the Asia Pacific region.

SIS Provides following services:

a) Security Services – India
b) Security Services – International
c) Electronic Security Solutions
d) Alarm, Monitoring and Response

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Apr 09 2021
Buyback Offer Amount: ₹ 100 Crores
Date of Board Meeting approving the proposal: Feb 15 2021
Date of Public Announcement: Feb 15 2021
Buyback Offer Size: 1.24%
Buyback Number of Shares: 18,18,181
Price Type: Tender Offer
FV: 5
Buyback Price: ₹ 550 Per Equity Share

Details of Buyback:

Approved the proposal to buy-back up to 18,18,181 Equity Shares of Re.5/- each of the Company for an aggregate amount not exceeding Rs.100 Crores (hereinafter referred to as the "Buyback Size") being 1.24% of the total paid-up equity share capital, at Rs. 550/- per Equity Share (hereinafter referred to as the "Buyback Price") via tender route.

Salient financial parameters:

Particulars(in Cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 TTM
Sales 3,835 4,385 5,833 7,093 8,485 8,892
Expenses 3,666 4,165 5,534 6,742 7,969 8,359
Operating Profit 169 220 300 352 516 533
OPM % 4% 5% 5% 5% 6% 6%
Other Income 15 3 36 18 53 179
Interest 48 77 92 94 152 138
Depreciation 43 36 56 66 128 118
Profit before tax 94 110 187 210 289 456
Tax % 31% 1% 13% -2% 22%
Net Profit 76 112 162 216 225 259
EPS in Rs 61.07 8.14 11.07 14.72 15.38 17.61

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of SIS Limited Buyback 2021 in demat or physical form as on the record date [09.04.2021] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Available] by selling your shares through your broker on NSE or BSE. 3. Then on [Not Available], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 363 Shares at CMP of Rs.440 [200000/550=363]
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,59,720 1,59,720 1,59,720 1,59,720
No. of Shares buyback 119 181 272 363
BuyBack Profit 13090 19910 29920 39930
Profit(%) 8.19% 12.46% 18.73% 25%

Recommendation:

Review and Recommendation of SIS Buyback offer 2021 by InvestorZone team is: 4/10 [Entitlement Ratio = 10%]

18 Comments

Leave a Reply