SIS Limited , a prominent player in the security services sector, has announced a strategic internal restructuring move involving its Australian subsidiaries. The company has entered into a Share Purchase Agreement to transfer a portion of its stake in one of its wholly-owned Australian entities.

Transaction Details

SIS Limited signed an agreement to transfer 800,000 equity shares, representing a 5.06% shareholding in SIS Australia Group Pty. Limited, to SIS Australia Holdings Pty. Limited. The transaction, valued at approximately INR 90.00 crores (equivalent to AUD 15.20 million), is part of an internal restructuring initiative within the SIS group.

Intra-Group Transfer

Both the entities involved in this transaction—SIS Australia Group Pty. Limited and SIS Australia Holdings Pty. Limited—are wholly-owned subsidiaries of SIS Limited. This makes the deal an intra-group related party transaction, which the company has confirmed is being conducted on an arm's length basis.

Financial Impact

SIS Australia Group Pty. Limited contributed significantly to SIS Limited's consolidated financials:

Transaction Timeline

The share transfer is expected to be completed on or before October 15, 2025, subject to the fulfillment of necessary formalities.

Regulatory Compliance

SIS Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about this transaction, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This internal restructuring move by SIS Limited appears to be a strategic step in optimizing its corporate structure in Australia. While the immediate financial impact seems limited, given the relatively small percentage of income contribution, the restructuring could potentially streamline operations and improve efficiency within the group's Australian business segment.

SIS Limited , a leading security services provider, has announced a significant move to consolidate its market position by acquiring a 51% stake in A P Securitas Private Limited (APS), a well-established security services company with over 40 years of experience in the industry. This strategic acquisition is set to bolster SIS's presence in key sectors and expand its client base across India.

Transaction Details

The initial transaction values the first tranche at approximately 8.3 times EBITDA multiple, with SIS paying INR 73.40 crore for the 51% stake. The remaining 49% is scheduled to be acquired over the next 3-4 years through a performance-linked structure, incentivizing growth and improved margins.

A P Securitas: A Snapshot

A P Securitas is a pan-India security services company with:

• Annual revenue exceeding INR 1,000.00 crore
• Approximately 40,000 employees
• Primary focus on private sector clients
• 34% revenue from the BFSI (Banking, Financial Services, and Insurance) sector
• Presence in logistics, IT outsourcing, and education sectors
• 4.30% EBITDA margins and 2.27% PAT margins
• Net debt of INR 100.00 crore
• Net worth of INR 86.00 crore

Strategic Implications

Post-acquisition, SIS's combined security business will have a monthly revenue run rate of approximately INR 600.00 crore, making it nearly twice the size of its nearest competitor. This move aligns with SIS's Vision 2030 strategy, which aims to:

1. Move from market leadership to increased market share
2. Shift from services towards integrated security solutions

Operational Strategy

SIS plans to operate APS as an independent entity for at least the next three years, retaining the current management team. This approach is designed to ensure continuity and leverage APS's existing strengths while working towards synergies and operational efficiencies.

Financial Impact

The acquisition is funded through internal accruals, maintaining SIS's net debt-to-EBITDA ratio below 1x. The deal is expected to be accretive, with SIS projecting an ex-IRR of over 21% in a base case scenario.

Market Positioning

With this acquisition, SIS strengthens its position in key sectors such as BFSI and logistics. The combined entity will offer an integrated model of man-guarding and electronic services solutions, focusing on a solution-selling approach that aligns with evolving market demands.

Future Outlook

SIS expects to begin consolidating APS's financials from Q3 of the current fiscal year. The company aims to leverage this acquisition to enhance its market share, expand its service offerings, and drive growth in line with its long-term strategic objectives.

Rituraj Sinha, Group Managing Director of SIS, commented on the acquisition: "This deal fits well with our strategy. It is funded internally, does not put the company's balance sheet under pressure, and will help us move forward towards our Vision 2030 objectives."

As the security services landscape continues to evolve, this strategic move positions SIS to capitalize on emerging opportunities and reinforce its leadership in the Indian security services market.

Note: All financial figures are in INR crore unless otherwise stated.