Cash logistics solutions provider SIS Cash Services files IPO papers, fresh issue size at Rs 100 crore

SIS Cash Services IPO

SIS and Singpai-backed cash logistics solutions provider SIS Cash Services has filed draft red herring prospectus with the SEBI to raise funds via initial public offering for capital expenditure and debt reduction.

The IPO will be a combination of fresh issuance of equity shares worth Rs 100 crore, and an offer-for-sale of 37.15 lakh shares by existing shareholders. Promoters SIS, and SMC Integrated Facility Management Solutions will be selling 17.95 lakh and 19.19 lakh shares, respectively, via offer-for-sale.

Selling shareholders SIS (formerly known as Security and Intelligence Services India), the listed corporate firm since August 2017, and SMC Integrated Facility Management Solutions hold 39.31 percent and 9.69 percent stake, respectively, in SIS Cash Services. Singpai Pte owns 49 percent shares, while Gujarat Fusion Glass LLP, the only public shareholder, has 2 percent shareholding in the company.

SIS Cash Services has been providing cash logistics solutions for 13 years, competing with listed entities like AGS Transact Technologies, CMS Info Systems, and Radiant Cash Management Services.

Click Here To Read All IPO News

It plans to utilise Rs 37.6 crore out of net fresh issue proceeds for purchase of cash vehicles and fabrication of the secured vehicle, and Rs 29.8 crore for repaying debt. The reminder IPO funds will be used for general corporate purposes.

On the financial front, the company's revenue grew at a CAGR of 27.06 percent and profit 225 percent during FY22-FY24

SIS Cash Services operates under the trademark SIS Prosegur, and its subsidiary SIS Prosegur Holdings operates under the trademark SISCO.

The merchant banker appointed for handling the public issue is DAM Capital Advisors.