SIS Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 19, 2022In this article, we will discuss SIS Limited Buyback offer, buyback price, buyback size, SIS Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – SIS Share Price
SIS Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | May 12, 2021 |
| Closing Date | May 27, 2021 |
| Buyback Offer Amount | Rs.99,99,99,550 |
| Buyback No. of Shares | 18,18,181 |
| Face Value | Rs.5 |
| Date of Buyback Approval | February 15, 2021 |
| Date of Public Announcement | March 23, 2021 |
| Buy Back Price | Rs.550 |
| Buy Back Premium | 34.91% |
| Date of Board Meeting | February 15, 2021 |
SIS Limited Buyback Opening and Closing Date
The starting and closing date of this buyback is May 12, 2021, and May 27, 2021.
SIS Limited Buyback Cash Offer
The Cash Offer to Buy-back up to 18,18,181 fully paid-up equity shares of the Company of the face value of Rs.5 each, representing 1.24% of the total number of equity shares.
SIS Limited Buyback Record Date
The decided record date of this buyback is April 9, 2021.
SIS Limited Buyback Price
At a price of Rs.550 per Equity Share.
SIS Limited Buyback Size
At a buyback price of Rs.550/- payable in cash for an aggregate consideration not exceeding Rs.99,99,99,550/-.
SIS Limited Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
SIS Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 550 | 110000 | 35800 | 9.65% |
| 40% | 400 | 550 | 220000 | 71600 | 19.30% |
| 60% | 600 | 550 | 330000 | 107400 | 28.95% |
| 80% | 800 | 550 | 440000 | 143200 | 38.60% |
| 100% | 1000 | 550 | 550000 | 179000 | 48.25% |
Profit is calculated from May 06, 2021 share price i.e. Rs.371 per share of SIS Limited.
According to the above table, if a shareowner applies for 1000 shares of SIS Limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.550 per share & receive Rs.35800 as profit amount & 9.65% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.550 & receive a profit of Rs.107400 @ 28.95% profit percentage.
SIS Limited Buyback Overview
The Company is a public listed company and along with its subsidiaries is engaged in the business of security services, and facilities management and through its joint ventures/associates engaged in the business of cash logistics.
The Company along with its subsidiaries is a provider of private security and facility management services in India. Its portfolio of services includes:
- Private security services, comprising of – Security services and Electronic security services, and home alarm monitoring and response services.
- Cash logistics services
- Facility management services
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Company Finances – SIS Limited
The salient features of the financial information of the Company for last three financial years as at and for the financial year ended March 31, 2020, March 31, 2019, and March 31, 2018 and as at and for the nine months period ended December 31, 2020 on consolidated as well as a standalone basis are given below:
[In Rs. million]
| Particulars | December 31, 2020 | 12 Months period ended March 31 | ||
| 2020 | 2019 | 2018 | ||
| Total Income | 22,496.29 | 30,407.96 | 25,250.05 | 21,426.48 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 20,946.73 | 28,047.12 | 23,602.02 | 19,874.57 |
| Interest | 549.42 | 756.36 | 475.43 | 465.54 |
| Depreciation and amortization expenses | 310.51 | 534.79 | 295.10 | 305.27 |
| Profit before tax | 689.63 | 1,069.69 | 877.50 | 772.78 |
| Provision for tax (including Deferred Tax) |
194.30 | 206.41 | (315.11) | 42.67 |
| Profit /(Loss) after tax | 495.33 | 863.28 | 1,192.61 | 730.11 |
| Equity Share Capital | 737.55 | 733.19 | 733.13 | 731.84 |
| Reserve and Surplus | 7,281.94 | 6,846.52 | 6,550.97 | 5,332.67 |
| Net-worth | 8,019.49 | 7,579.71 | 7,284.10 | 6,064.51 |
| Total Debt (Excluding working capital loans) | 6,555.58 | 6,544.16 | 4,916.45 | 2,262.54 |
SIS Ltd Buyback Dates
| Date of Board Meeting approving the Buyback | February 15, 2021 |
| Date of declaration of results of the postal ballot for special resolution by the Equity Shareholders of the Company, approving the Buyback |
March 22, 2021
|
| Date of publication of Public Announcement for Buyback | March 24, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | April 9, 2021 |
| Buyback Opening date |
May 12, 2021
|
| Buyback Closing date |
May 27, 2021
|
| Last date of receipt of the completed tender form and other specified documents |
May 29, 2021
|
| Last Date of verification of Tender Forms by the Registrar |
June 2, 2021
|
| *Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar |
June 4, 2021
|
| Last date of Settlement of Bids on the BSE Limited |
June 7, 2021
|
| *Last date of return of unaccepted Equity Shares by BSE Limited |
June 7, 2021
|
| Last date of Extinguishment of Equity Shares |
June 14, 2021
|
Details of Public Announcement
In accordance with Regulation 7(i) of the Buyback Regulations, the Company has made the Public Announcement dated March 22, 2021 for the Buyback of Equity Shares published on March 24, 2021 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Aaj | Hindi | Patna edition |
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Necessity of SIS Limited Buyback
The Buyback is being undertaken, inter-alia, for the following reasons:
(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders;
(ii) The Buyback, which is being implemented through the tender offer route as prescribed under the SEBI Buyback Regulations, would involve allocation of the number of Equity Shares as per their entitlement or 15% of the number of Equity Shares to be bought back whichever is higher, reserved for the small shareholders. The Company believes that this reservation for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder” as per Regulation 2(i)(n) of the SEBI Buyback Regulations;
(iii) The Buyback may help in improving its return on equity, by the reduction in the equity base, thereby leading to a long term increase in shareholders’ value; and
(iv) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.
Impact of SIS Limited Buyback on the Company
The Buyback is not likely to cause any material impact on the profitability/ earnings of the Company, except to the extent of reduction of in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
The Buyback is not expected to impact growth opportunities for the Company. Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.
The Buyback will not result in a change in control or otherwise affect the existing management structure of the Company.
Salient financial parameters consequent to the Buyback based on the latest audited standalone financial statements for the period ended on March 31, 2020 are as under:
| Parameter (based on Audited Condensed Financial Statements as at and for the period ended June 30, 2020 | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in million) | 7,579.71 | 6,579.71 |
| Return on Net worth (%) | 11.39% | 13.12% |
| Earnings Per Share (Rs) | 5.89 | 5.96 |
| Book Value per Share (Rs) | 51.69 | 45.43 |
| P/E as per the latest audited standalone financial statements (BSE) | 71.30 | 70.45 |
| Total Debt / Equity Ratio | 0.86 | 0.99 |
Basis of Calculating SIS Limited Buyback Price
The Equity Shares of the Company are proposed to be bought back at a price of INR 550/- per Equity Share.
The Buyback Offer Price has been arrived at, after considering various factors such as the average closing prices of the Equity Shares of the Company on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (BSE and NSE collectively referred to as “Stock Exchanges”) where the Equity Shares of the Company are listed, the net worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Offer Price represents:
(a) Premium of 30.20% and 34.91% over the volume-weighted average market price of the Equity Shares on NSE and BSE, respectively, during the three months preceding February 10, 2021, being the date of intimation to NSE and BSE for the Board Meeting to consider the proposal of the Buyback (“Intimation Date”).
(b) Premium of 34.10% and 36.28% over the volume-weighted average market price of the Equity Shares on NSE and BSE, respectively, for two weeks, preceding the Intimation Date.
(c) Premium of 34.29% and 34.11% over the closing price of the Equity Shares on NSE and BSE, respectively, as on the Intimation Date.
(d) Premium of 30.35% and 30.83% over the closing price of the Equity Shares on NSE and BSE, respectively, as on February 9, 2021, being the day preceding the Intimation Date.
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Source of Funds for the Buyback
Assuming full acceptance, the funds that would be utilized by the Company for the purpose of the Buyback of up to 18,18,181 Equity Shares at a price of INR 550/- per Equity Share would be an aggregate maximum amount of INR 99,99,99,550/- excluding the Transaction Costs.
The Buyback would be financed out of the free reserves and/ or securities premium account and/or such other sources or by such mechanisms, as may be permitted by applicable laws.
The Company shall transfer from its free reserves or securities premium account and/ or such sources as may be permitted by law, a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited financial statement. The funds borrowed, if any, from banks and financial institutions will not be used for the Buyback.
SIS Limited – Manager to the Buyback
| Buyback Manager Details |
| ICICI SECURITIES LIMITED ICICI Centre, H.T. Parekh Marg Churchgate, Mumbai – 400 020 Tel. No.: + 91 22 2288 2460 Fax No.: +91 22 2282 6580 Contact Person: Vaibhav Saboo / Anurag Byas Email: sis.buyback@icicisecurities.com Website: www.icicisecurities.com SEBI Registration No.: INM000011179 Validity Period: Permanent CIN: L65923MH1997PTC109992 |
SIS Limited – Registrar to the Buyback
| Registrar Details |
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083, Maharashtra, India Tel No.: +91 22 4918 6200 Fax No.: +91 22 4918 6195 Contact Person: Sumeet Deshpande Email: sis.buyback@linkintime.co.in Investor Grievance Id: sis.buyback@linkintime.co.in Website: www.linkintime.co.in SEBI Registration No.: INR000004058 Validity Period: Permanent CIN: U67190MH1999PTC118368 |
SIS Limited Contact Details
| Company Contact Details |
| SIS LIMITED (formerly known as Security and Intelligence (Services) India Limited) CIN: L75230BR1985PLC002083 Registered Office: Annapoorna Bhawan, Telephone Exchange Road, Kurji, Patna- 800 010 Tel. No.: +91 612 226 6666 | Fax. No.: +91 612 226 3948 Contact Person: Ms. Pushpalatha Katkuri, Company Secretary and Compliance Officer E-mail: shareholders@sisindia.com | Website: www.sisindia.com |
SIS Limited Buyback News
News 1 – SIS Buyback PDF / Letter of Offer [Download]
News 2 – SIS Limited Ltd – Draft Letter of Offer [Download]
FAQs of SIS Limited Buyback
What is the SIS Limited Buyback Period?
SIS Limited Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. March 22, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. June 7, 2021.
What type of buyback is SIS Limited Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the SIS Limited Buyback Offer?
SIS Limited Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 18,18,181 Fully paid up Equity shares, adhering to the buyback price.
When SIS Limited Buyback offer will start?
As per the released schedule, the SIS Limited Buyback offer will start on May 12, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of SIS Limited Buyback at all times, we ensure you have access to the right data.
When is the closing date of SIS Limited Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of SIS Limited Buyback. The buyback would close on May 27, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for SIS Limited Buyback?
The amount at which the shares are taken back by the company is referred to as SIS Limited Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.550, the price paid to each eligible shareholder.
What is the record date for SIS Limited Buyback offer?
The record date of SIS Limited Buyback is April 9, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, the letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of SIS Limited Buyback?
SIS Limited Buyback Size is Rs.99,99,99,550 and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for SIS Limited Buyback?
The objective of the SIS Limited Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to SIS Limited Buyback offer?
The designated registrar of SIS Limited Buyback is LINK INTIME INDIA PRIVATE LIMITED. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address, and more.
Who is the Manager of the SIS Limited Buyback offer?
Manager to the SIS Limited Buyback is ICICI SECURITIES LIMITED. The manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check SIS Limited buyback acceptance ratio?
The acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buy back and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find SIS Limited Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the SIS Limited Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as SIS Limited Buyback Dates.
What can be the Impact of SIS Limited Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on SIS Limited Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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