Upcoming IPO: SIS Cash Service files DRHP with SEBI to raise funds via OFS, fresh issue

SIS Cash Service Limited, on March 29, said that it has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).

The IPO, with a face value of ₹10 per equity share, comprises a fresh issue of up to ₹100 crore and an offer for sale of up to 3,715,150 shares by the Promoter Selling Shareholders.

The offer for sale includes 1,795,346 equity shares from SIS Limited and 1,919,804 equity shares from SMC Integrated Facility Management Solutions Limited.

The offer is being conducted through the book-building process, with at least 75% allocated proportionally to qualified institutional buyers, up to 15% reserved for non-institutional bidders, and no more than 10% available for retail individual investors.

Proceeds from the fresh issue will be utilized as follows: ₹37.59 crore for capital expenditure, including the purchase of cash vehicles and fabrication of secured vehicles; ₹29.81 crore for prepayment or scheduled repayment of certain outstanding borrowings; and the remainder for general corporate purposes.

DAM Capital Advisors Limited is the book-running lead manager to the issue, and MUFG Intime India Private Limited is the registrar to the offer.

About the company

SIS Cash Services Limited has been a leading provider of cash logistics solutions in India for 13 years. As of Fiscal 2024, it is the second-largest player in the industry by revenue, holding an estimated market share of 17-18%, according to a CRISIL Report. The company is also the fastest-growing cash logistics firm in the country, with revenue growing at a CAGR of 27.06% and profit after tax rising at a CAGR of 224.89% between Fiscal 2022 and Fiscal 2024.

As of March 31, 2024, SIS Cash Services Limited operates the largest fleet of secured vehicles for cash-in-transit services. In Fiscal 2024 alone, the company processed cash worth ₹2,23,063.55 crore across all its business segments. It operates under the trademark SIS Prosegur, while its wholly-owned subsidiary, SIS Prosegur Holdings Private Limited, functions under the trademark SISCO.

Sis Cash Services Limited’s revenue from operations has increased by 16.72% from ₹ 543.03 crore in Fiscal 2023 to ₹ 633.83 crore in Fiscal 2024. Profit after tax grew by 166.04%, from ₹ 18.85 crore in Fiscal 2023 to ₹ 50.16 crore in Fiscal 2024.

For the nine months ended December 31, 2024, revenue from operations stood at ₹ 529.86 crore and Profit after tax stood at ₹ 38.74 crore.

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