SIS Cash Services files draft papers for IPO with SEBI

SIS Cash Services Ltd, the country’s second-largest cash logistics company by revenue, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).  

The IPO, with a face value of ₹10 per equity share, comprises a fresh issue of shares worth up to ₹100 crore and an offer-for-sale (OFS) of up to 3,715,150 equity shares by the promoter selling shareholders.

The OFS includes 1,795,346 equity shares offloaded by SIS Ltd and 1,919,804 equity shares by SMC Integrated Facility Management Solutions Ltd.  

The IPO will follow the book-building process, allocating at least 75 per cent of the issue to Qualified Institutional Buyers (QIBs), up to 15 per cent to non-institutional bidders, and up to 10 per cent to retail individual investors.  

Of the fund raise, ₹37.59 crore will be for capital expenditure on purchasing and fabricating secured cash vehicles, ₹29.81 crore for prepayment or repayment of certain outstanding borrowings, and the remainder for general corporate purposes.  

SIS Cash Services is estimated to have 17-18 per cent market share, according to a CRISIL report,.

Between FY22 and FY24, the company’s revenue grew at a CAGR of 27.06 per cent, while profit after tax surged at a CAGR of 224.89 per cent, the DRHP mentioned.

As of March 31, 2024, SIS Cash Services Ltd operates the largest fleet of secured vehicles for cash-in-transit services. 

In FY24, the company processed ₹2,23,063.55 crore worth of cash across its business segments.

It operates under the trademark ‘SIS Prosegur,’ while its wholly-owned subsidiary, SIS Prosegur Holdings Pvt Ltd, functions under the “SISCO” trademark.  

The company provides a range of traditional cash logistics services, including cash-in-transit, retail cash management (doorstep banking), ATM cash replenishment and first-level maintenance, and cash assistant/ cash peon services. Additionally, it offers value-added solutions for handling valuables, including cash, shifting its business model toward comprehensive, end-to-end solutions.  

SIS Cash Services Ltd had ₹633.83 crore in revenue from operations, up nearly 17 per cent from ₹543.03 crore in FY23. Its profit after tax rose by 166 per cent last fiscal to ₹50.16 crore, as against ₹19 crore-odd. 

For the nine months ended December 31, 2024, the company recorded revenue of ₹529.86 crore and a profit-after-tax of ₹38.74 crore.  

DAM Capital Advisors Ltd is the book-running lead manager for the IPO, while MUFG Intime India Pvt Ltd is the registrar to the offer.