Topsgrup IPO : Planning an IPO in FY11-12

by khalid on 29/07/2010 · 0 comments

Topsgrup is the second largest security services provider in India after Group4Securitas, which is number 1. The company is planning its IPO in FY 11-12 for raising money from primary market to meet its plans of acquisitions worth up to Rs 1,000 crore in India and the US. The company is planning for the IPO to raise around Rs 300 crore in 2011-12. The additional money required for the buyouts will come from internal accruals.

The company will submit the draft red herring prospectus (DRHP) to SEBI within the next three months. It is yet to appoint any merchant banker for the proposed IPO. However, it has engaged two audit firms as advisers to look for the buyouts.

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.

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.

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