NIS Management IPO

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

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.

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.

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.

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 Neo 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.