SIS Limited has announced that it will acquire a 51% stake in A P Securitas, a security services firm, marking its first inorganic activity in five years. The company made the announcement during an investor and analyst conference call on September 8, 2025.
A P Securitas, established over 40 years ago, has a pan-India presence with a significant portion of its business coming from the BFSI sector, accounting for approximately one-third of its portfolio. The company serves clients across various corporate sectors, including banking, logistics, outsourcing, and education, employing nearly 40,000 people. Its revenues are over ₹1,000 crore, based on FY24 numbers.
The acquisition will include a 51% stake, with the balance to be acquired over the next three to four years. This phased approach is intended to de-risk the investment. SIS Limited targets a minimum IRR of 20% from this investment.
According to Vineet Toshniwal, President, M&A and Investor Relations at SIS Limited, the deal is expected to close in a minimum of one month, potentially extending to two months. Consolidation is expected to begin in Q3 onwards.
The first tranche consideration is ₹73.4 crore for the 51% stake. The final EV will be determined after the FY25 audit is completed, and adjustments are made for net debt and working capital.
A P Securitas is concentrated in North India, with over 60% of its operations based there. However, the company operates as a centralized entity, targeting pan-India contracts. Key sectors include BFSI (34%), logistics, and IT outsourcing.
As of FY24, A P Securitas has a net debt of approximately ₹100 crore and a net worth of ₹86 crore. The company also has a subsidiary named Vijayant Facility Management Services, which is being taken out of the transaction and will be handled separately by the outgoing promoter.
For FY24, A P Securitas reported an EBITDA margin of 4.3% and a PAT margin of 2.27%. The working capital cycle is similar to SIS Security, with a DSO in the 65-70 days range. The ROCE is approximately 13.6%-13.8%.
Rituraj Sinha, Group Managing Director of SIS, noted that the acquisition aligns with SIS Limited's M&A strategy, focusing on market share consolidation in key segments like banking and logistics. It also supports the company's Vision 2030, which aims to double market share in Security and FM in India and shift towards integrated solutions.
Post-acquisition, SIS Security business in India is expected to have monthly revenues of around ₹600 crore, positioning it as twice the size of its nearest competitor, G4S. The acquisition is funded through internal accruals, with net debt-to-EBITDA remaining below 1x.
The first tranche is happening at roughly 8.3x EBITDA multiple. There is a rachet structure that allows the seller to sell up to 9x if they perform very well. But there is also a flow should they underperform, one could buy those shares at a lower multiple.
The acquisition is expected to be insignificantly accretive at the PAT level initially, with plans to converge margins with SIS securities business over time. The company intends to continue operating APS with its current management and leadership team for the next 3 years at least, till it is a 100% owned subsidiary of SIS.
The acquisition is funded through internal accruals, with net debt-to-EBITDA remaining well within 1x even post paying for this transaction.
The acquisition is funded through internal accruals, with net debt-to-EBITDA remaining well within 1x even post paying for this transaction.
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