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India’s security family increases stake and eyes private equity

The family behind Indian security service provider SIS Securities has upped its ownership stake in the business by buying back shares held by a US-based hedge fund, and has shifted its focus to expanding through private equity investments.

The family behind Indian security service provider SIS Securities has upped its ownership stake in the business by buying back shares held by a US-based hedge fund, and has shifted its focus to expanding through private equity investments.

The Sinha family, which owns around 85% of Delhi-based SIS Securities, has purchased the 14% owned by DE Shaw, which had invested in the company in 2007, according to a report in India’s Financial Express.

When contacted, an SIS spokeswoman was unavailable for comment.

The report also said the Sinha family business plans to dilute its ownership over the next few months by selling 20% of the company to private equity investors, aimed at bringing in funds of around Rs 500 crore (€80 million). The funds will be used for further expansion, the family said.

Second-generation Rituraj Sinha, chief operating officer of SIS, told the Financial Express: “We are in talks with some private equity players for a stake sale in the company. The final contours would be made public at the time of announcement. The funds would be primarily used for further funding of small acquisitions in security space both in India and abroad.”

If the deal goes ahead, it will value SIS at around €400 million, and will be the biggest private equity deal in India’s security industry. SIS has been on an expansion spree this year, signing two joint ventures with international companies. The company joined forces with US-based Terminix, the world’s largest pest control service provider, with a majority stake of 51% in the venture.

The Sinha family business also formed a partnership with Spain’s Prosegur, the world’s second-largest private security company by market capitalisation. The expansion plans come as no surprise, as India’s booming private security market is estimated to grow by around 25% in the next five years and is currently worth around €2 billion.

SIS was founded in 1974 by Rituraj’s father Ravindra Kishore Sinha. He is currently chairman and managing director of the company, while his wife Rita is a director. Founded as an investigation firm, the company now offers services including electronic security systems, cash services and manned guarding.

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