CP Plus, a security and surveillance solutions provider, is in talks with private equity funds to raise around $100 million by September, two people aware of the development said.
The company has hired investment bank Avendus Capital to help raise the funds by selling a significant minority stake. “The company expects to soon receive non-binding bids from PE firms. The fundraise is expected to be closed by the end of next quarter.”
CP Plus sells products such as CCTV cameras, high-definition IP video surveillance cameras, mobile DVRs, time and attendance solutions, video door phones, digital locks, home automation solutions, accessories and customized enterprise level security systems.
According to the source, the company has received strong interest from PE firms.
“There is strong interest in the security and surveillance space and CP Plus being the leader in the domestic market is an attractive bet for investors. Additionally, Aditya Infotech is also a distributor for a Chinese brand Dahua Technology, which also has a strong presence in the Indian market. CP Plus itself has been growing at a pace of 25-30% year on year,” he said, also requesting anonymity.
Dahua is one of the largest surveillance brands globally. According to the company’s filings with the registrar of companies (RoC), CP Plus reported stand-alone revenue of Rs768 crore in the financial year 2015-16, as against a revenue of Rs527.38 crore in the previous fiscal.
In 2015-16, the company reported a profit of Rs12 crore, as compared to a profit of Rs14.53 crore in the previous year. Latest financial numbers were not available with the RoC.