SIS Limited Buyback 2023
SIS Group Enterprises, a prominent player in the field of security, facility management, and cash logistics, has distinguished itself through a tech-led approach that significantly enhances operational efficiency and offers a unique customer experience. The group’s digital platform boasts of an array of innovative technologies such as iOPS, ARK, SalesMaxx, NQC, RQC, iPorter, SSDP, TFM, iQMS, iFMOps, and the MySIS app. These cutting-edge tools not only streamline processes but also ensure a superior service delivery.
India’s largest command center, SIS Group Enterprises skillfully manages over 500,000 sites across the nation, marking its dominance in the e-surveillance industry. This expansive operational network is not just confined to the Indian subcontinent; it extends its reach internationally, with a significant presence in Australia, New Zealand, and Singapore
Buy Back Offer Deal:
| Buyback Type: | Tender Offer |
| Buyback Record Date: | Dec 12 2023 |
| Buyback Opening Date: | Dec 18 2023 |
| Buyback Closing Date: | Dec 22 2023 |
| Buyback Offer Amount: | ₹ 90 Cr |
| Date of Board Meeting approving the proposal: | Nov 30 2023 |
| Date of Public Announcement: | Nov 30 2023 |
| Buyback Offer Size: | 1.12% |
| Buyback Number of Shares: | 16,36,363 |
| Price Type: | Tender Offer |
| FV: | 5 |
| Buyback Price: | ₹ 550 Per Equity Share |
Details of Buyback:
Salient financial parameters:
|
Particulars (In Cr)
|
Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 |
| Sales + | 7,093 | 8,485 | 9,127 | 10,059 | 11,346 |
| Expenses + | 6,742 | 7,969 | 8,607 | 9,561 | 10,854 |
| Operating Profit | 352 | 516 | 521 | 498 | 492 |
| OPM % | 5% | 6% | 6% | 5% | 4% |
| Other Income + | 18 | 53 | 202 | 55 | 43 |
| Interest | 94 | 152 | 127 | 98 | 115 |
| Depreciation | 66 | 128 | 113 | 112 | 135 |
| Profit before tax | 210 | 289 | 483 | 344 | 285 |
| Tax % | -2% | 22% | 24% | 5% | -22% |
| Net Profit + | 215 | 225 | 367 | 326 | 346 |
| EPS in Rs | 14.72 | 15.38 | 24.64 | 22.11 | 23.77 |
|
Dividend Payout %
|
12% | 13% | 0% | 0% | 0% |
How to Participate in buyback?
Profit from the buyback on the bases of acceptance Ratio:
| Acceptance Ratio | 33% | 50% | 75% | 100% |
| Amount Invested in Buyback | 1,71,808 | 1,71,808 | 1,71,808 | 1,71,808 |
| No. of Shares Buyback | 120 | 182 | 273 | 364 |
| Buyback Profit | 9,360 | 14,196 | 21,294 | 28,392 |
| Profit% | 5.45% | 8.26% | 12.39% | 16.53% |
77 Comments
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AR 37% only .all calculations get failed.
Hi Girish, did you get any confirmation?
I too received confirmation mail from zerodha, 153 out of 410 accepted
Debited from account at 15.30 hrs as sell
I found my mistake in calculation shown in post dated 21st Dec 23.
I had mixed up data of 2021 & 2022 buy back, hence above calculation is null and void.
After omiting mistakes done in previous calculation, AR still looks good to me for 2023.
AR in 2021: 22.25 for small share holders
AR in 2022: 41.67
Forecasted AR for 2023: Minimum 55 %
During calculation, I have also considered the fact that total shares tendered 1.17 crores in 2023 (more than 1.13 crore shares in 2022)
Hello Ankit, AR of around 55% would be good and hope to make some profit in SIS buyback
148 out of 400 good acceptance ratio
Where did u get this information from ?
Email from registrar ?
If it’s true then I am disappointed
works out to be only 37%
AANKIT, I Already told that AR will be around 35%. so for me it was as per my expectation.
Forecasting AR in buyback is a meaningless exercise as it depends on so many unpredictable and dynamic factors which cannot be calculated or foreseen. So better to leave it aside and concentrate on factors which will help us to be prosperous in the coming days. Wish you all a happy and prosperous new year.
My Forecasted AR after Calculations : Minimum 55%
Reality: 153 out of 410 : 37.31 %
I am disappointed.
Will have to find out better method of forecasting AR for future buy backs
Despite of no of Bidding are less this time 11918 as comapre to previous buyback 13715 but no of share tender is increased 1.17 crore shares as compare to PY 1.13 crore shares.
AR will be around 30-35%.
SIS BUYBACK ACCEPTANCE RATIO 41% (+/- 3%) STOCK IS IN UPTREND SO IT MUST BE PROFITABLE FOR ALL BUYBACK PARTICIPANTS
55 SIS shares bought by me yesterday and tendered were not accepted for buyback by the broker. Thanks to the warning by VSK ji and Rohit ji, I bought only 55 nos @ ₹454.75/ Sold now @ 469/
Hi Gopi, any particular reason for not accepting?
Obviously the holding on the the final day should not have T1 tail attached to it.. Rohit ji may throw more light on this.
Thanks Gopi, this helps us to trade carefully
Zerodha and PayTM consider the holding available at 06:30 AM for trading. So, if the shares are credited before that time then it starts showing in their trading platform.
I found out this after filing 2 cases against them in Scores and they accept there is scope for improvement. I am unable to win the case against them as SEBI does not have any specific guidelines for brokers to allow investors to trade in extra returned shares applied for the buyback.
So, I think the same logic they used at the time of placing an order for the buyback for Gopi
Thanks for the details Rohit, lot to learn
Thank you Rohit ji for the valuable update.I saw in CNBC AWAZ news of T+1 being changed to T+0 wef January or so. Hope that this kind of problems won’t arise thereafter.
After buyback closing date (Dec 22 2023), whether the share price will go down ?
It is already on the upmove with the current market trend which is a very good indication .
I regret selling my holdings except the entitled quota today at 480/
You can buy it again today (as you have sold it today so the trade will be considered intraday and make sure you do it on the same exchange) and apply for the buyback with the whole quantity that you had.
Thank you so much for the suggestion, Rohit ji.I will buy the sold quantity of 256 tomorrow. I don’t think there will be any problem. Tendering can be done on 28th morning if not tomorrow evening. Do you anticipate any problem?
The tender period ends on 22nd Dec. I have tendered all the shares today.
Hi Gopi ji,
Were you able to submit the extra shares today morning ?
Submitted yesterday itself. But shares bought yesterday remained in my account. I have tendered this again this morning. Will let you know the outcome.
Typing error. Please read the date as 22.
I feel its risky as dec 22 isT+1 and shares should reflect in demat account to be tendered in buyback. Check with your broker and try.
No more regret since there is no loss except may be the tax benefit.
SIS 2023 Buyback:
Expected ER was 10%
Actual ER published : 13.17 to 13.40
Expected AR would be much better than that of 2021 (may be 40 to 45%)
SIS 2021 Buyback:
Actual AR was 22.25
In absence of data like ‘Total number of Retail bids’ , total number of Retail shares tendered’, it is impossible to forecast Possible AR based on calculations.
Yes, anyone can put forward guess work about prospective AR based on recent past experiences of same or other company etc.
However, I have tried to forecast Prospective AR of SIS based on multiple mathematical ratios, past SIS buyback data and few assumptions.
To keep it simple, one has to track Only total number of bids at NSE (BSE is not participating). In 2021 SIS buy back, total number of bids were 16,996 (including all categories)
FORECAST IS DIFFICULT TO BELIEVE FOR ME, AS WELL. (May be I am missing something in entire calculation and analysis, but have been not able to find out).
Let’s see if it proves to be right?
Total Bids Retail Oversubscription Min AR
11,500 1.41 96%
12,000 1.47 79%
12,500 1.53 66%
13,000 1.59 55%
13,500 1.65 47%
14,000 1.71 40%
14,500 1.77 34%
15,000 1.83 29%
I am having 150 shares of SIS. They mailed today that Entitlement for Buy-back Offer is only 20 shares.
Query 1 : It means I can tender only 20 shares, not more than that ?
Query 2 : What will happen If I tender More than 20 shares.
Query 3 : if acceptance ratio is 40% (In future) then only 40% of 20 i.e. 8 shares will be taken by SIS ?
You can tender all 150 Share. whatver share will be accepted and left share will be credit to your demat account. suppose company accept 50 share out of 150 then balance 100 will be credit to your account.
Please share what is the meaning of : “Entitlement for Buy-back Offer is only 20 shares.”
@VIVEK
It means that Company is bound to accept ONLY 20 out of your 150 shares under buy back scheme.
In reality, many existing share holders do not participate in buy back scheme for various reasons hence their ER shares are left with company.
In such scenario, Company might accept few shares above your entitled 20 shares
So to maximise return on investment buy back investor offers maximum shares during offer
Hope it explains ur query
Dear Ankit, your explanation is very clear and Crisp. This doubt is clear now. Thanks so much !!
Submit 150 to get max benefit.
ER :- 13.25%
Buyback Opening Date :- 18th Dec
Buyback Closing Date :- 22nd Dec
Settlement of bids:- 1st Jan 24
This is my first Buyback. I need gentle guidance :
1. Which Dmat account provides best facility for Buyback perspective ?
2. I am having Angel broking, please share how to tender shares from there.
I’m with Zerodha broking since 2018. Never faced any such difficulty.
In Angle there is no option in App to tender so you need to contact your broker or call customer care. They will place bid on your behalf.
I have account with Angel. It’s an online facility, you should get the link to apply for buyback via email once the buyback period starts
Thanks Nikhil.
Q1 : SIS will send the Link Or angel ?
Q2 : Have you ever applied through the link ?
Now a days Buyback record date and Ex-date are same? like in this case 12th is ex-date as well as record date, this is how its always?
Earlier there were T+2 Days transaction so need to buy share 2 days before to credit in demat account. Now it is reduce to T+1 day transaction so need to buy share 1 day before. i.e. in this case if you buy on 11th Dec you share will credit on 12th Dec. and will be eligible. if you purchase on 12th Dec then your share be credit in demat account on 13th Dec and in this case you wont be eligible for buyback as you were not a shareholde on 12th Dec.
Thanks Ankit
Is today last date to buy to participate in buyback?
Yes 11th was last date.
How much is the maximum amount I can invest as a retail participant in a buyback? Can anybody please reply ?
The value of the shares held by you in which you are participating for buyback should be less than ₹200000/ on the record date .
Thank you Gopi
SIS closing rate on NSE on 12th Dec (Record date) is 454.85
To be eligible as Retail Shareholder you should be holding either 439 or lesser shares on 12th Dec
Expected ER would be 10%
Expected AR would be 22 to 24%
I request all the experts in this panel to give their view so that we can understand the process of buyback in SME stocks as SM auto is a SME stock and traded in the lot of 4000.
There are thousands of shares to trade. Why should anyone care about this one which has an inborn handicap and certainly is not a human being !
Reply is related to SME status share please.
is one share buyback strategy works here??
Single share may be accepted most probably, but it won’t be worth if you apply the simple economic principle of cost vs benefit.
It will work.
But if you are using zerodha then around 40rs will be costs such as order placement charges, DP charges etc.
Profit will be <50rs
Please add to the cost ,the time and effort made by the investor. That is what I meant by not worth.
Gopi and Nixon brother is this sis sme ipo, what is this profit less than 50 rs. We will buy group of shares not just 1 share alone we are not going to apply for buyback right.
SIS is not a SME category share. It is a good quality main line all weather share which can be bought and held for long term also
The buyback price is not good. It was 550 in the last 2 buybacks as well.
In 2021, the CMP was 425.75 on the date of the board meeting, and in 2022, it was 453.8.
I think we should wait until it comes near to 450.
Nice to hear from you Rohit ji after a while. Feared that many of the old mates have abandoned this arena. Nothing is known about Sumit ji for a long time. Hope he is fine. What I noticed in this buy back is the fact that when the Board meeting was announced this share price had not gone up in the preceding month as has been the case in most most of the buybacks. So there probably was no insider information leakage about the buyback which is a good sign
Buyback by this firm has been a regular event of late. Leftover shares can be carried forward and losses made up in the next buyback. I don’t expect the prices falling much in the remaining days,certainly not upto 450/. Wishing you good luck .
Yes Rohit Ji.
History suggest that stocks falls towards 400-420 after buyback completion.
450 is the range to enter.
In fact, company has not delivered much on front of share value appreciation since its IPO at around Rs. 900 (FV at Rs.10 against present at Rs.5) 6 years back, with no dividend till date. Further retail share holders( with investment upto Rs 2.00 lacs), hold about 61 lacs share against total of 14.60 crores, as on 30th September, which works out to 4.2%, which mean that they will be entitled for 4% of their total holding for buy back as against 1% in general as per SEBI guidelines of 15% reserve quota for retail share holders. Accordingly this buyback proposal too doesn’t seem to be worth proceeding, like the previous two.
Record date is 12th Dec 2023
Buyback price is 550 per share
Total no of share in Buyback is 16,36,363
Total no of share reserve for retail Portion is 245455
Thank you for the update, Ankit ji. Any idea about the amount allocated? Last time it was ₹80/ crore as per my knowledge.
Total buyback size is 90 crores
Thank you Daddu ji.
Gopi Ji total buyback size this time is Rs 90 crore. Record date is 12th Dec. ER would be around 13-15% if price sustain around current price
Looking good. I will be participating.
Any one bought sis for buyback this year?
Previous year acceptation ratio kitna tha. Please tell ???
Last year AR was more than 40%. Amount allocated was ₹ 80 crore. Expecting to be a good one. Eager to know the Board meeting outcome.