SIS LIMITED approves buyback of equity shares with potential capital return reaching Rs 720 crore
SIS Ltd. has announced that its Board of Directors has approved, in principle, a proposal to conduct a share buyback, marking the company's fifth such initiative since its listing in August 2017. Once executed, this buyback, valued up to Rs 120 crore, is expected to bring the cumulative capital returned to shareholders, across prior buybacks and dividends, to approximately Rs 720 crore.The proposed move underscores SIS's sustained commitment to returning surplus capital to its investors, building upon a consistent track record of shareholder returns. Prior to this proposal, the company had completed four buybacks (totaling around Rs 420 crore) and distributed dividends amounting to roughly Rs 180 crore, resulting in an estimated total return of approximately Rs 600 crore.
The company's financial history regarding capital distribution is detailed below:
| Financial Year | Dividend (Rs/share) | Buyback (Rs cr) | Shares Bought | Total Returned (Rs cr) |
|---|---|---|---|---|
| FY18 | 1.75 | - | - | ~26 |
| FY19 | 1.75 | - | - | ~26 |
| FY20 | 2.00 | - | - | ~29 |
| FY21 | - | 100 | ~18.2 lakh | 100 |
| FY23 | - | 80 | ~14.5 lakh | 80 |
| FY24 | - | 90 | ~16.4 lakh | 90 |
| FY26 | 7.00 | 150 | ~37.1 lakh | ~249 |
| Returned to date | 12.50 | ~420 | ~86 lakh | ~600 |
| This buyback (proposed) | - | 120 | ~25 lakh | 120 |
| Total incl. this buyback | 12.50 | ~540 | ~111 lakh | ~720 |
The proposed buyback is capped at a maximum price equivalent to a 10% premium over the last closing price of the company's shares, with the maximum value estimated up to approximately Rs 478.50 per share. The total committed capital from this specific initiative is up to Rs 120 crore.
Commenting on the proposal, Mr Rituraj Kishore Sinha, Group Managing Director, stated that SIS has bought back close to 86 lakh shares since listing. He added that the company will continue evaluating opportunities to return surplus capital to shareholders and anticipates that the proposed fifth buyback will be accretive to both earnings per share and return on capital, similar to its four previous initiatives.
About SIS Limited (SIS)
SIS is described as a US$ 1.5 Bn Indian Multinational and an Essential services Market Leader in India, employing over 3,00,000 individuals. With offices across more than 300 locations and over 600 districts, the company ranks among the Top 10 private sector employers. SIS holds the #1 position in Security Solutions and Facility Management segments, and is ranked #2 in Cash Logistics within India. It is also noted as the largest Security Solutions company in Australia.
SIS Stock Price Movement
SIS LIMITED shares today edged higher to settle at ₹435.85, posting a 0.55% gain in post-market trading. The stock saw brisk activity, with total traded volume reaching 339,845 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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