The Hindu Business Line : Topsgrup looking to acquire 2 South-based cos

Hyderabad, May 20 Topsgrup, the country’s second largest security solutions provider, is looking at acquiring two South Indian companies in the security service space.

“At the moment we cannot disclose too many details regarding these acquisitions but the companies are based out of South India and the deal is likely to be finalised soon. Also talks are on for acquiring a US-based company for about $300 million,” Dr Diwan Rahul Nanda, Chairman and Managing Director, Topsgrup, said.

He told newspersons here on Monday that the company is also looking to expand its footprint in Australia, Europe and South Africa by acquiring companies in the region.

Recently, the company acquired Bangalore-based Guardwell Detective Services Pvt Ltd in an all-cash deal for Rs 20 crore. It has also closed a deal for acquiring a company in the UK for $140 million.

“The funds required for the acquisitions will be raised through a mix of debt and equity. We are also in talks with couple of aviation service companies abroad so that we can expand and offer better aero medical evacuation services,” Dr Nanda said.

He also announced that the company is looking at expanding its market share from the present 28 per cent in Hyderabad to nearly 45 per cent this year.

Dr Nanda said that the market capitalisation of the company was Rs 1,000 crore, with over 70,000 security staff and 110 offices across the country.

“Currently the company has four training centres across the country and we are in the process of setting up one in Hyderabad,” he said.

For the current financial year, the company together with the Indian and foreign acquisitions expects the total revenues to cross Rs 1,000 crore. Last year, the revenues of the company were at Rs 330 crore.

“We will look at going in for an initial public offer in a year or two once the revenue is between Rs 2,500 and Rs 3000 crore,” Dr Nanda said, when asked if the company was looking at tapping the capital markets.

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