The Hindu Business Line : 2 private equity funds pick 16.5% stake in Tops Security

Mumbai, Aug.16 Two private equity players — ICICI Venture and Indivision, (private equity arm of Future Capital holdings) have together picked up 16.46 per cent stake for Rs 140 crore in the Mumbai based Tops Security Ltd, the flagship company of TOPSGRUP.

ICICI Venture will invest Rs 115 crore for picking up a 13.69 per cent stake while Indivision will increase its existing stake to 7.08 per cent by paying Rs 25 crore.

Tops Security provides manned guarding services to the corporate, hospitality, industrial and the IT sector. “The investment is in line with our policy to invest in sectors that are at the point of inflection.

In Tops, we see an opportunity to create a brand out of a commoditized business,” said Ms Bala Deshpande, Director-Investments, ICICI Venture.

The Indian security market is approximately worth Rs 4000 crore and is growing as a compounded annual growth rate of 21 per cent, according to Dr Diwan Rahul Nanda, Chairman & Managing Director, TOPSGRUP.

Tops services more than 5000 clients including industry majors like Tata Group, HSBC, Jet Airways, MIDC etc. Post the transaction,the Nanda family’s (promoters of Tops) stake in the company will be reduced to 65.98 per cent from 79.18 per cent, said Dr Nanda.

Forthcoming acquisition

Dr Nanda said that the company is very close to acquiring a firm in the security space. “We will be spending Rs 250 crore in acquiring a company in the UK within the next one month,” he said, without giving further details.

Tops has plans to go for an initial public offer within the next two years. For the year ended March 2006-07, TOPSGRUP recorded turnover was Rs 270 crore.

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