SIS Cash Services Files DRHP for IPO with SEBI

SIS Cash Services Ltd, a leading cash logistics provider, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The issue comprises a fresh share issuance worth ₹100 crore and an offer for sale (OFS) of 37.15 lakh shares by existing promoters, including SIS Ltd and SMC Integrated Facility Management Solutions Ltd.

IPO Details and Utilisation of Funds

The IPO carries a face value of ₹10 per equity share. A majority of 75% of the issue is allocated for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail individual investors.

The proceeds from the fresh issue will primarily be used for business expansion, including ₹37.59 crore allocated for purchasing and fabricating secure cash vehicles and ₹29.81 crore for debt repayment. The remaining funds will support general corporate activities.

Business Operations and Market Standing

As per a news report, SIS Cash Services holds a significant market position, being the second-largest player in the industry by revenue for the fiscal year 2024, with an estimated market share of 17-18%.

About Company

Operating under the trademark SIS Prosegur, the company provides comprehensive cash management services, including cash-in-transit, retail cash management (doorstep banking), ATM cash replenishment, and first-level maintenance. Additionally, its wholly-owned subsidiary, SIS Prosegur Holdings, operates under the trademark SISCO.

SIS Cash Services has also expanded its service portfolio by offering value-added solutions for managing valuables. This strategic shift enables the company to deliver end-to-end solutions to its clients.

Conclusion

With a strong industry presence and diversified service offerings, SIS Cash Services aims to strengthen its market position through its upcoming IPO. The funds raised will be directed towards infrastructure enhancement and debt reduction, ensuring steady business growth. DAM Capital Advisors is acting as the sole book-running lead manager, while MUFG Intime India is the registrar for the issue.

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