Goods and Services Tax (GST) will boost organised security services business, Security and Intelligence Services India Ltd (SIS) has said. “GST requires lot of compliance and this will help faster migration of business from unorganised to organised players. Out of some Rs 45,000 crore market, over 70 per cent is occupied by unorganised players,” SIS group CEO Uday Singh said. With other enabling environment, he was targeting a growth of around 30 per cent during the current fiscal.
Claiming SIS to be the second largest security services firm in the country, he said, it will be the first such company to go public on July 31. The target is to raise around Rs 780 crore out of which about Rs 362 crore will come as fresh issue. The remaining amount will go to promoters including private investor CX Partners, company officials said. SIS said it plans to use part of the proceeds from its IPO to pare debt to the tune of Rs 200 crore out of total Rs 760 crore. Singh said it will repay the Rs 120 crore loan raised for takeover of maintenance company–Dusters.
For SIS, its Australian company remains as cash cow with some Rs 2200 crore revenue coming from it out of the group’s total revenue of Rs 4600 crore. SIS is a holding company with companies focused on three key verticals – security services, cash logistics and facility management services. Electronic security, home alarm monitoring and pest control also contribute to a small portion of its revenue