MUMBAI: Delhi-based security services provider Security and Intelligence Services (SIS) is in talks to buy 75% in TVS Capital-backed Dusters Total Solutions, a Bengaluru-based facility management services provider, for around Rs 350 crore, people with direct knowledge of the matter said.
Dusters had put the company on the block in September last year and was looking at a valuation of Rs 300-350 crore. The stake sale is set to give a complete exit to TVS Shriram Growth, a fund managed by TVS Capital. The fund had acquired 51% stake in Dusters in 2010 for Rs 58 crore.
The deal would also give a partial exit to the promoters, Shamsher Puri and Jasmer Puri, who owned 49% in the company. After the SIS deal, the promoters’ stake would go down to about 24%. “The deal is concluded,” a person in the know told ET. “The promoters (of Dusters) for now would continue to be on board with an option to exit, going ahead.” According to another person close to the development, the deal is structured in a way that Dusters’ promoters could exit the company in the next couple of years. “This would be the biggest deal in the facility management,” he said. Email queries sent on Friday to Dusters, TVS Capital and SIS promoter Rituraj Sinha did not elicit any response till press time. Dusters have an annual revenue of around Rs 450 crore. After the consolidation with Dusters, the total revenue of the SIS Group in the facility management segment is expected to be around Rs 700 crore.
The deal comes at a time when SIS is looking to raise money through an initial public offer (IPO). ET had on May 31 reported that SIS was looking to raise around Rs 1,000 crore from the primary market. The IPO could see Ajay Relanfounded fund CX Partners get an exit from SIS. CX Partners had invested Rs 300 crore in SIS in 2013.
According to people in the know, SIS has compounded annual growth rate of around 30%. After the Dusters’ deal, SIS’ revenue is set to touch around Rs 5,000 crore by the end of this fiscal. Founded in 1974, SIS is the biggest security services firm in India, according to its website. The company offers electronic security, guards and cash management services, besides consulting and security training.
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