SIS Ltd Buyback 2022

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.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 80 Cr
Date of Board Meeting approving the proposal: Jun 29 2022
Date of Public Announcement: Jun 29 2022
Buyback Offer Size: 1%
Buyback Number of Shares: 14,54,545
Price Type: Tender offer
FV: 5
Buyback Price: ₹ 550 Per Equity Share

Details of Buyback:

SIS has approved buyback of fully paid up equity shares of the Company having a face value of ₹ 5/- not exceeding INR 80 Crores/ or  14,54,545 Equity Shares and such buyback (“Buyback”) from all shareholders/ beneficial owners of the Equity Shares of the Company, ( at a price of ₹ 550 (Indian Rupees Five Hundred Fifty Only) per Equity Share (“Buyback Offer Price”), via "Tender Route".

Salient financial parameters:

Particulars (In Cr.)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 4,385 5,833 7,093 8,485 9,127 10,059
Expenses 4,165 5,533 6,742 7,969 8,607 9,561
Operating Profit 220 300 352 516 521 498
OPM % 5% 5% 5% 6% 6% 5%
Other Income 3 36 18 53 202 55
Interest 77 92 94 152 127 98
Depreciation 36 56 66 128 113 112
Profit before tax 110 187 210 289 483 344
Tax % 1% 13% -2% 22% 24% 5%
Net Profit 112 162 216 225 365 325
EPS in Rs 8.14 11.07 14.72 15.38 24.64 22.12
Dividend Payout % 0% 16% 12% 13% 0% 0%
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How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of SIS Buyback 2022 in demat or physical form as on the record date [Not Announced]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced] by selling your shares through your broker on NSE or BSE.
3. Then on [Not Announced], 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.449 ( 2,00,000/550=363)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,62,987 1,62,987 1,62,987 1,62,987
No. of Shares buyback 119 181 272 363
BuyBack Profit 11900 18100 27200 36300
Profit 7.3%% 11% 16.6% 22%
 

Recommendation:

Review and Recommendation of SISLtd Buyback 2022 from our IZ team is: 3/10

The IPO size is small i.e. only 80 Crores. Currently, the ER is 4.27%.

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