IPO Details
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IPO Size
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Schedule of NIS Management IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About NIS Management IPO
The IPO of NIS Management Ltd comprises a fresh issue and an offer for sale. Fresh issue consists of up to 46,64,000 equity shares, while offer for sale consists of up to 11,66,000 equity shares. It’s a 100% book-built issue. The price range and lot size are yet to be decided.
The listing of shares will take place on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA. The initiation of refunds will take place on TBA.
Objectives of NIS Management IPO
- To meet working capital requirements
- General corporate purpose
NIS Management IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 46,64,000 equity shares |
Offer for Sale | Up to 11,66,000 equity shares |
EPS in ₹ in FY 24 | 21.42 |
NIS Management IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Applicants | Not less than 15% of the offer |
Retail Individual Investors | Not less than 35% of the offer |
Industry Outlook
The Facility Management Services Market in India is expanding rapidly and provides a wide range of services for managing and maintaining various facilities. Organisations are turning to facility management services to ensure efficient and cost-effective administration of their physical assets, as the emphasis on outsourcing non-core operations grows. The market includes, among other things, building maintenance, cleaning, security, trash management, and landscaping.
It is anticipated that between 2023 and 2030, the India Facility Management Services Market will expand at a compound annual growth rate (CAGR) of 8%. From USD 139485.5 million in 2022, the market is projected to be worth USD 258177.9 million by 2030.
Company Information
Founded in Kolkata in 1985, NIS Management Limited commenced operations with a primary emphasis on delivering security guards and investigative services. In its evolution, the company expanded into electronic security services, initially providing alarm systems to jewellery stores. This segment eventually evolved into a distinct entity, NIS Facility Management Services Pvt Ltd, a wholly-owned subsidiary catering to state governments and PSUs with comprehensive security solutions.
Strengths of NIS Management IPO
Strong Regional Presence and Manpower Sourcing
NIS's extensive network and deep-rooted connections in key states such as West Bengal, Bihar, Jharkhand, parts of North-East India, Uttar Pradesh, Odisha, and Maharashtra provide a significant competitive advantage. This regional presence enables NIS to efficiently source and deploy skilled manpower across diverse client sites. Over its 37-year history, NIS has meticulously built a robust supply chain of personnel, ensuring reliable service delivery and operational excellence in the highly competitive service industry.
High Core to Associate Ratio
Maintaining an impressive core to associate ratio of 129:1 reflects NIS's commitment to lean and efficient operations. With only 131 back-office staff overseeing a vast workforce of over 16,500 employees across more than 1,200 sites, NIS optimises resource allocation and enhances managerial effectiveness. The significant improvement from a previous ratio of 50:1 since 2019 underscores NIS's proactive approach to enhancing operational efficiency and maintaining scalable growth.
Mobile Application-Based Attendance System
NIS leverages a sophisticated mobile application-based attendance system to ensure accurate and real-time tracking of employee attendance. This technology not only minimises discrepancies in billing and revenue recognition but also enhances operational transparency and accountability. By implementing digital solutions for attendance management, NIS mitigates risks associated with manual processes, thereby fostering sustained business growth and client satisfaction.
NSDC Certified Training Provider
Through its subsidiary, Keertika Academy Private Limited, NIS is recognised as a certified training provider by the National Skill Development Corporation (NSDC). This accreditation underscores NIS's commitment to continuous skill development and industry-standard training programs. By investing in the professional growth of its workforce, NIS ensures that employees meet and exceed client expectations, thereby strengthening client relationships and fostering long-term partnerships.
Risks of NIS Management IPO
- Revenue Concentration in West Bengal
NIS Management Ltd operates across more than 10 states, but it heavily depends on West Bengal for a substantial portion of its revenue. As of March 31, 2022, 79.57% of its total revenue came from operations in West Bengal. By March 31, 2023, this figure was 80%, and as of March 31, 2024, it was 77.18%. This dependence underscores that the majority of its revenue is derived from this region.
- Significant Revenue from Security and Housekeeping Divisions
The company’s revenues from the Security Division and Housekeeping Division contribute significantly to its revenue from operations. Any loss of business from such services may adversely affect its revenues and profitability.
- Subject to Labour Legislations
The company is subject to several labour legislations and regulations governing welfare, benefits and training of its employees. It’s also a party to several litigations initiated by its former or current employees.
NIS Management IPO Financials
Peer Comparison
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
NIS Management Ltd | 352.66 | 21.42 | 13.28 | 172.26 |
Quess Corporation Ltd | 15571.18 | - | 12.65 | - |
SIS Ltd | 4541.26 | - | 18.97 | - |
Teamlease Service Ltd | 8440.80 | - | 13.70 | - |
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Maashitla Securities Pvt Ltd
- Book Running Lead Manager: Share India Capital Services Pvt Ltd
Business Model
With a primary emphasis on delivering security guards and investigative services, the company expanded into electronic security services. It offers housekeeping services and integrated facility management services, among others.
Company Growth Trajectory
The revenue from operations of NIS Management Ltd grew from ₹265.6602 crores in FY 22 to ₹352.6612 crores in FY 24. Its PAT margin has grown slightly from 4.18% in FY 22 to 4.42% in FY 24. Its EBITDA grew from ₹20.3395 crores in FY 22 to ₹26.5069 crores in FY 24. Strong regional presence coupled with high core to associate ratio has helped in the company’s growth over the years.
Market Position
NIS Management Ltd has its registered office in Kolkata, West Bengal. It has expanded to include 14 branches, strategically positioned to optimise service delivery across diverse locations. It remains steadfast in its commitment to delivering exceptional service, tailored to local needs, and maintaining high operational standards across all branches.
NIS Management IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Revenue (in ₹ crores) | 353.58 | 305.67 | 266.13 |
Profit / (Loss) Before Tax (in ₹ crores) | 19.19 | 16.39 | 15.23 |
Profit After Tax (in ₹ crores) | 15.57 | 13.48 | 11.10 |
EPS in ₹ | 21.42 | 16.91 | 15.95 |
EBITDA | 26.50 | 305.09 | 265.66 |
NIS Management Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit / (Loss) Before Tax (in ₹ crores) | 19.19 | 16.39 | 15.23 |
Net Cash Used in Operating Activities (in ₹ crores) | 11.13 | 8.72 | -1.98 |
Net Cash Generated from/ (used in) Investing Activities (in ₹ crores) | 0.25 | 2.32 | -4.20 |
Net Cash Generated from Financing Activities (in ₹ crores) | -4.19 | -7.19 | 13.01 |
Cash & Cash Equivalents as At End of the Year (in ₹ crores) | 24.97 | 17.77 | 13.91 |
How to Apply for the NIS Management IPO?
Visit the Registrar’s Website
- Go to the official website of Maashitla Securities Pvt Ltd
- Choose ‘Public’ Issues from ‘Allotment Status’
- Select Company Name and enter either your PAN No, Application No or Demat Account No
- Click on ‘Submit’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for the NIS Management IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
NIS Management IPO FAQs
Where can I read more about NIS Management business?
You can read more about NIS Management and its IPO from the company’s red herring prospectus (RHP) here.
What is the NIS Management Ltd IPO?
The NIS Management Ltd IPO comprises a fresh issue of up to 46,64,000 equity shares and an offer for sale of up to 11,66,000 equity shares of face value of ₹ 10 each.
When will the IPO of NIS Management go live?
The exact dates of the IPO are not known.
