I-Venture, Indivision invest Rs 140 cr in Tops Security

PRIVATE EQUITY WATCH

In the largest private equity investment in the security space, ICICI Venture and Indivision today announced the acquisition of a 16.46 per cent stake in Tops Security for Rs 140 crore.

The deal values the flagship company of the country's biggest security services provider, Topsgrup, at Rs 850 crore.

ICICI Venture, the country's largest private equity firm with assets under management of $2 billion, is investing Rs 115 crore in Tops Security, while Indivision, the private equity arm of retail czar Kishore Biyani's Future Capital, is injecting Rs 25 crore.

Although the companies do not divulge the shareholding of the investors through the deal, a back-of-the envelope calculation, suggests that ICICI Venture picked up 13.52 per cent stake, while Indivision purchased 2.94 per cent.

Indivision, prior to the deal, held 4.11 per cent in the security company, in which high networth investor Rakesh Jhunjhunwala holds 12.7 per cent stake. Jhunjhunwala is also a director of the holding company Topsgrup.

Announcing the fund raising, Topsgrup CMD Diwan Rahul Nanda said: "We envision Topsgrup to be among the top 10 global security organisations in the coming years and a preferred security brand across the world."

Renuka Ramnath, MD & CEO of ICICI Ventures said : " ICICI Venture has a unique track record of identifying and investing in new, emerging sectors and partnering with the best player in that sector. Our investment in Topsgrup reflects this philosophy and we believe that the company will usher in a new era in the security industry in India."

Topsgrup offers security solutions to over 5,000 clients in India. It has 110 offices in the country and has over 50,000 employees. With a projected (2007-08) turnover in excess of Rs 900 crore, it is the No.1 brand in the Indian security industry and growing at a rapid CAGR of over 50 per cent.