SIS Limited Approves Open Market Buyback of Equity Shares up to ₹106 Crores

SIS Limited Approves Open Market Buyback of Equity Shares up to ₹106 Crores​

SIS Limited has approved a proposal for the open market buyback of its fully paid-up equity shares, setting out the parameters and operational structure for the corporate action. The decision was taken by the Board of Directors following detailed consideration of the company’s financial position.

The Board granted approval for the buyback of the company's equity shares, which have a face value of ₹5/- each. The company is authorized to acquire these shares from shareholders and beneficial owners at a maximum price not exceeding ₹478.50 per Equity Share.

The maximum size of the buyback has been set at up to ₹106.00 Crores, which represents 9.99% of the total paid-up equity share capital and free reserves as per audited financial statements for the year ended March 31, 2026. The company will implement this transaction through open market purchases executed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE).

The indicative maximum number of Equity Shares proposed to be bought back at the Maximum Buyback Price is 22,15,256 shares. Furthermore, the Board mandated that a minimum buyback size must be achieved, which corresponds to an indicative minimum purchase of 16,61,442 Equity Shares.

Key parameters and targets for the SIS Limited buyback are detailed below:

Operational Structure and Implementation​

The company has appointed several parties to facilitate the buyback process. Elara Capital (India) Private Limited has been designated as the manager for the proposed buyback, while Elara Securities (India) Private Limited was appointed as the registered broker to execute trades on BSE and NSE. MUFG Intime India Private Limited was appointed as the investor service centre.

The operational requirements included mandating that the company establish an escrow account for performance security. An Escrow Account was opened with YES Bank Limited, and a deposit of 26.50 Crores, representing 25% of the Maximum Buyback Size, was made into the account.

Governance and Commitments​

A dedicated Buyback Committee comprising Mr. Rituraj Kishore Sinha, Managing Director; Mr. Arvind Kumar Prasad, Whole-Time Director; and Mr. Uday Singh, Independent Director, was constituted to oversee the implementation of the transaction.

The Board also confirmed that the buyback would be financed from free reserves and cash or cash equivalents and internal accruals. The company committed that it would not purchase its own equity shares through any subsidiary or investment company, nor would it deal in such shares before the completion of the offer period. The buyback is expected to close within sixty-six working days from the opening date.

SIS Stock Price Movement​

Today, shares of SIS LIMITED shed 1.32%, settling at ₹433 after trading down ₹5.80 in the post-market session. The stock moved on a volume of 406,346 shares during today's trading activity.