Security solutions firm Zicom Electronic raising around $9M from Frontline Strategy, promoters

Security solutions firm Zicom Electronic Security Systems Ltd is raising Rs 58.4 crore (around $9.1 million) through allotment of equity shares and warrants on a preferential basis to the promoters’ group companies and other investors, as per a stock market disclosure.

The board of directors of the company, in a meeting held on December 17, 2014, approved the allotment of 2.6 million equity shares and 1.05 million warrants, each warrant carrying an entitlement to subscribe to one equity share, on preferential basis, at a minimum price of Rs 160 per share, at a premium of Rs 150 per share.

It, however, did not disclose the purpose of the fundraising.

While equity shares will be allotted to Frontline Strategy Ltd and its founder Atim Kabra, apart from Arvind Darab Dubash and Sudha Darab Dubash; warrants will be issued to promoter group companies Baronet Properties and Investments Pvt Ltd and Coronet Properties and Investments Pvt Ltd.

The fundraising decisions are subject to approvals of shareholders for which an Extra Ordinary General meeting is slated to be held on January 16, 2015, it added.

As on September 30, 2014, the promoters of the company held 24.07 per cent stake in Zicom, while remaining 75.93 per cent is held by public shareholders including institutions, FIIs and DIIs.

Started in 1995, Zicom Electronic Security Systems offers services in intrusion and burglar alarm systems, access control systems, fire detection systems, CCTV surveillance systems, central monitoring station and video monitoring station with focus and retail & SME sectors.

At present, the business caters to the residential and enterprises segment; it also has presence in the fire protection market in the Middle East. 

In the fiscal ended on March 2014, the company had clocked a revenue of Rs 926 crore, a growth of 35 per cent from the 

year-ago period, with a net profit of Rs 44.62 crore.

Shares of the company closed the day at Rs 152.80, up 3.77 per cent from their previous close on the BSE in flat Mumbai market on Wednesday.

(Edited by Joby Puthuparampil Johnson)

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