SIS erases entire gains to settle 7% lower against IPO price

The stock listed at Rs 879, an 8% premium against its issue price of Rs 815 per share on NSE

Security and Intelligence Services (India) (SIS) made a decent debut, listing at Rs 879 on the National Stock Exchange (NSE), an 8% premium against its initial public offer (IPO) price of Rs 815 per share. However, the stock erased all its intraday gains to settle lower. 

On BSE, the scrip settled at Rs 756, down 7% against its issue price, and 13% against its opening price. The stock had opened at Rs 875, 7.4% higher against its issue price.

The Rs 780-crore public issue, which was opened for subscription between July 31 and August 2, was oversubscribed 7 times.

Qualified institutional buyers (QIBs) portion was oversubscribed 5.64 times, non institutional investors 1.66 times and retail investors 19.51 times. The issue price was fixed at the higher end of price band of Rs 805-815 per share.

The funds raised through fresh issue would be used for repayment and pre-payment of a portion of certain outstanding indebtedness availed by company; funding working capital requirements; and general corporate purposes.

The company provides private security and facility management services across India and Australia. In addition to the core security services segment, which accounts for 87% of revenue, the company has also forayed into other segments of cash logistics and facility management.  The Australian acquisition was a key driving factor of the security services business and contributes about 60% to the segment revenue.