SIS Cash Service Limited Files DRHP to Launch Exciting IPO and Boost Funding

SIS Cash Services Limited has taken a significant step towards public investment by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on March 29. This move aims to raise funds through an initial public offering (IPO), which features a face value of ₹10 per equity share. The IPO includes a fresh issue of up to ₹100 crore and a selling offer of 3,715,150 shares from various promoter shareholders.

Key IPO Details

The selling offer is structured as follows:

1,795,346 equity shares from SIS Limited
1,919,804 equity shares from SMC Integrated Facility Management Solutions Limited

This IPO will be executed via a book-building process. The allocation is designed to ensure a diverse range of investors, with 75% reserved for qualified institutional buyers, 15% for non-institutional bidders, and 10% for retail investors.

Utilization of IPO Proceeds

The funds raised from the fresh issue will be allocated as follows:

₹37.59 crore for capital expenditures, including the purchase of cash transportation vehicles
₹29.81 crore for the repayment of outstanding borrowings
Remaining funds will be used for general corporate purposes

DAM Capital Advisors Limited serves as the book-running lead manager for this IPO, while MUFG Intime India Private Limited acts as the registrar.

Company Overview and Growth Trajectory

SIS Cash Services Limited has established itself as a premier provider of cash logistics solutions in India over the past 13 years. As of Fiscal 2024, the company ranks as the second-largest player in the industry, holding a 17-18% market share, according to a CRISIL Report. Notably, SIS is recognized as the fastest-growing cash logistics firm within the nation, boasting a 27.06% compound annual growth rate (CAGR) in revenue and an impressive 224.89% CAGR in profit after tax from Fiscal 2022 to Fiscal 2024.

As of March 31, 2024, SIS Cash Services operates the largest fleet of secured vehicles dedicated to cash-in-transit services. During Fiscal 2024, the company processed a staggering ₹2,23,063.55 crore in cash across its various business segments. Operating under the trademark SIS Prosegur, its wholly-owned subsidiary, SIS Prosegur Holdings Private Limited, also markets under the name SISCO.

Financial Performance Highlights

SIS Cash Services Limited has witnessed significant growth in its financial performance:

Revenue from operations climbed by 16.72%, from ₹543.03 crore in Fiscal 2023 to ₹633.83 crore in Fiscal 2024.
Profit after tax surged by 166.04%, increasing from ₹18.85 crore in Fiscal 2023 to ₹50.16 crore in Fiscal 2024.

For the nine months ending December 31, 2024, the company’s revenue from operations reached ₹529.86 crore, with profit after tax standing at ₹38.74 crore.

With such robust statistics, SIS Cash Services Limited is poised for a promising future as it enters the public capital markets, paving the way for further expansion and innovation in the cash logistics sector.