Mumbai based Topsgrup is the second largest security services provider in India after Group4Securitas, which is number 1. The company has informed the share market(BSE/NSE) that they have planning to enter capital markets with its initial public offer (IPO) of Rs 400 crore in coming 6 months. The money raised would be utilized by the company for domestic acquisitions. The additional money required for the buyouts will come from internal accruals. This IPO will comprise a fresh issue of shares and an offer for sale. The offer for sale will pave the way for part exit of some of the marquee investors. Jhunjhunwala had earlier adopted the same route in another firm A2Z Maintenance where he had exited partly through the company’s IPO.
TopsSecurity Limited, the flagship company of Topsgrup, is the first security firm in India to get private equity funding in 2007. ICICI Venture invested Rs 115 crore for a 13.69 per cent equity stake, while Indivision (the investment arm of Future Group) increased its stake in the company to 7.08 per cent from 4.94 per cent with an additional investment of Rs 25 crore. Stock investor Rakesh Jhunjhunwala owns a 10.8 per cent stake and is a director on the board.
The company is Tops Strategic Business Group, part of Topsgroup, India’s leading, internationally recognized total security and facility management solutions provider and the first Indian security group in South East Asia, to be certified as ISO 9001:2000 compliant by RvA, Dutch Council of Accreditation.
In 2008, Topsgrup acquired a 51 per cent stake in a UK security service provider — The Shield Guarding Company — for about Rs 125 crore. In the same year, it had bought Bangalore-based Guardwell Detective Services Pvt Ltd for an undisclosed amount. Topsgrup had also acquired a 14.69 per cent stake in Chennai-based security systems integrator firm Adtech Systems.
The Book Running Lead Managers to the Issue would be JM Financial, IIFL, Kotak Investment Banking and Enam Securities.
The profit after tax for the company was Rs 746.88 lacs in 2010 as against Rs 1,39.34 lacs in 2009. The total income was Rs 30,060.57 lacs in 2010 as against Rs 32,520.42 lacs in 2009.
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