Integrated security and facility management company Tenon Group plans to raise close to ₹1,000 crore to fund its proposed acquisitions to grow and diversify its business. The company is exploring possibilities of tapping the private equity (PE) route or the IPO (initial public offering) market for raising funds.

According to Manjit Rajain, Executive Chairman, Tenon Group, a number of companies have come under stress due to the Covid-induced slowdown in business and the time was right to look for acquisitions.

“We can either go for PE and wait for about a year or year-and-a-half, do some acquisitions, build the scale and go for listing. The other option is to go straight for listing. If we take the PE route, then we should be able to raise the funds in the next two quarters. But in case we go for IPO, it will take about a year or so,” Rajain told BusinessLine .

Tenon group operates under three verticals including security services, facility management solutions, and remote monitoring and surveillance.

The company’s overseas security business vertical, Mortice, was listed on the London Alternative Investment Market in 2008. However, due to liquidity challenges it was made private in 2019.


The company’s board has identified three key areas for future growth and diversification of the group. The company may look to diversify and enhance its footprint in tier 2 cities by acquiring smaller companies in those areas and merging a couple of them.

It is also open to the possibility of diversifying into newer verticals including technology driven forex investigation, ancillary services including pest control etc.

Tenon had earlier acquired Rotopower which was into mechanical and electrical (M&E) maintenance, annual maintenance contracts and housekeeping, to strengthen its M&E services. It might look for similar acquisitions to strengthen its existing business and offerings.

The company currently offers remote monitoring and surveillance through Soteria. “We are keen to acquire a similar technology company, or look at smaller companies which have created the software which can be amalgamated into our technology business,” he said.

Business growth

The Covid-induced slowdown hit the company’s business, which witnessed a near 15 per cent decline in turnover at ₹1,415 crore in FY21, as compared with ₹1,666 crore in FY20. However, with things opening up and given the pent-up demand, the company is hopeful of achieving 20 per cent growth in turnover this fiscal.

The company, which has a significant foothold in north, south and west India, is looking to ramp-up its presence in central and east India this year.