Private security services firm Security and Intelligence Services India (SIS Security) said it is in talks to raise about ₹500 crore to build a war chest to step up acquisition.

SIS, which has investors like CX Partners, said it would also use the funds to scale up its existing businesses in areas such as cash management, security and surveillance, and also facility management.

Last year, the Ajay Relan led-CX Partners had invested close to ₹300 crore. It had acquired hedge fund player DE Shaw’s 20 per cent stake in SIS Security.

“The security and services industry is demonstrating huge growth potential on the back of healthy upswing in the domestic market. We have been brave enough to forge various alliances to give shape to various businesses,” said Rituraj Sinha, Promoter, SIS.

Sinha said DE Shaw, its former investor, had earned a seven-time return on its exit. SIS had reported a revenue of ₹2,844 crore for the fiscal ended 2013.

“Currently, we are in the fund raising mode. We are looking to raise ₹500 crore through debt. This would be deployed towards making acquisition in various areas of business,” he added.

SIS has seven businesses in its portfolio. Among the joint ventures are Prosegur, for cash management services, and also Australia’s Chubbs for guarding services.

The domestic security services industry, growing at over 30 per cent annually, employs over 5 million, and is estimated at $5 billion. It is largely unorganised, except for some prominent home grown players such as Topsgrup and G4S India.

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