Leading investor Rakesh Jhunjhunwala has picked up 16 per cent stake in Tops Security, an unlisted firm providing personal security to top corporate leaders, for Rs 21 crore (Rs 210 million).
Jhunjhunwala will join the board of Tops Security.
Diwan Nanda, chairman and managing director, Tops Security, said, "Jhunjhunwala has the skills complementary to our organisation and his association will further enhance value to our business."
Tops Security reported a top line growth of Rs 140 crore (Rs 1.40 billion) for the year ended March 31, 2005 and is expected to grow at 65 per cent in the current year. Joginder Singh, former director of Central Bureau of Investigation, is on the board of the company.
Jhunjhunwala said he would like to invest in companies where the promoters were passionate about their business.
"The security business was growing at a rapid pace and I would like to be a long term investors to benefit from the growth of the company," he said.
Tops Securities is planning to go public in the next two years.
Sunil Goyal of Ladderup Finance Ltd, the advisor to the deal, said, "The return on investment in Tops is high as the company has outpaced the industry growth of 20-21 per cent by achieving a growth at a rapid pace of 40-50 per cent."
The company was looking at expansion and consolidation and may buy out small professionally run outfits in the coming years, Nanda said.
