SIS Limited announced that its Board of Directors has approved, in principle, a proposal to undertake a share buyback of up to Rs. 120 crore. This represents the company's fifth buyback since its listing in August 2017.

Capital Return History

Upon execution of this proposed buyback, the total capital returned to shareholders since listing will reach approximately Rs. 720 crore. This cumulative amount comprises:

  • Four completed buybacks totaling ~Rs. 420 crore
  • Dividend payments totaling ~Rs. 180 crore
  • This proposed fifth buyback of Rs. 120 crore

The company provided a detailed breakdown of capital returned by financial year:

| Financial Year | Dividend (Rs/sh) | Buyback (Rs cr) | Price (Rs) | Shares Bought | Total Returned (Rs cr) |

| FY18 | 1.75 | – | – | – | ~26 |

| FY19 | 1.75 | – | – | – | ~26 |

| FY20 | 2.00 | – | – | – | ~29 |

| FY21 | – | 100 | 550 | ~18.2 lakh | 100 |

| FY23 | – | 80 | 550 | ~14.5 lakh | 80 |

| FY24 | – | 90 | 550 | ~16.4 lakh | 90 |

| FY26 | 7.00 | 150 | 404 | ~37.1 lakh | ~249 |

| Returned to date | 12.50 | ~420 | – | ~86 lakh | ~600 |

| This buyback (proposed) | – | 120 | ~478.50* | ~25 lakh | 120 |

| Total incl. this buyback | 12.50 | ~540 | – | ~111 lakh | ~720 |

*Total returned = dividends + buyback, by year, on a consolidated basis

Buyback Details

The Board has approved a maximum buyback price of Rs. 478.50 per share, representing a 10% premium to the last closing price of Rs. 435.

The final mode of buyback, detailed terms, and conditions remain subject to:

  • Final approval of the Board of Directors
  • Approval of shareholders of the Company
  • Compliance with applicable provisions of the Companies Act, 2013
  • SEBI (Buy-back of Securities) Regulations, 2018 (as amended)
  • Other applicable laws

Management Commentary

Mr. Rituraj Kishore Sinha, Group Managing Director, commented: "Since listing, SIS has bought back close to 86 lakh shares. We will continue to evaluate opportunities to return surplus capital to shareholders. The proposed fifth buyback, like the four before it, is expected to be accretive to both earnings per share and return on capital."

Company Background

The document notes that SIS is a US$ 1.5 billion Indian multinational essential services market leader with over 300,000 employees. The company maintains over 300 offices across 600+ districts and is among the Top 10 private sector employers in India. SIS holds leadership positions as #1 in Security Solutions, #1 in Facility Management, and #2 in Cash Logistics segments in India, and is the largest Security Solutions company in Australia.