BLS E-Services IPO subscribed 32.56 times. The public issue subscribed 102.52 times in the retail category, 2.24 times in QIB, and 66.48 times in the NII category by January 31, 2024 2:30 PM.
BLS E-Services IPO details
BLS E-Services IPO solely comprises of fresh issue of 2,30,30,000 crore equity shares by the subsidiary of the listed business BLS International Services. There is no offer-for-sale component to the BLS E-Services IPO.
In consultation with the book running lead manager (BRLM), BLS E-Services IPO conducted a pre-IPO placement through a private placement of 11,00,000 equity shares for cash at a price of ₹125 per equity share, totalling ₹1,375 lakhs. The size of the fresh-issue of equity shares has been reduced to 2,30,30,000 equity shares.
The company intends to use the net proceeds to finance the establishment of BLS Stores as a means of promoting organic growth, the acquisition of businesses to achieve inorganic growth, general corporate purposes, and strengthening the technology infrastructure to develop new capabilities and consolidate the current platforms.
The registrar of the BLS E-Services IPO is Kfin Technologies Limited, while the book running lead manager is Unistone Capital Pvt Ltd.
BLS E-Services IPO solely comprises of fresh issue of 2,30,30,000 crore equity shares. The net proceeds will be used for various purposes such as organic growth, inorganic growth, and general corporate purposes
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BLS E-Services Promoters
The promoter of the company is BLS International Services Limited. The promoters of BLS International are Alka Aggarwal, Diwakar Aggarwal, Gaurav Aggarwal, Madhukar Aggarwal, Shikhar Aggarwal, Sushil Aggarwal and Vinod Aggarwal.
BLS E-Services Management-
Board of directors include Rahul Sharma, Shikhar Aggarwal, Diwakar Aggarwal, Shivani Mishra, Ram Prakash Bajpai, Rakesh Mohan Garg, Manoj Joshi.
BLS E-Services peers-
The Listed peers for BLS E-Services are Emudhra Ltd with FY23 revenue of operations at ₹248.76 crore compared to ₹243.06 crore for BLS.
BLS E-Services Business-
BLS-E Services Limited is a digital service provider that provides Assisted E-Services, E-Governance Services at the grassroots level in India, and Business Correspondence services to major banks in the country. The revenue is generated through service fees, transactional commissions, registration fees, and various other charges from both consumers and merchants. The company collaborates with State Governments and PSU Banks, earning service fees or commissions for each successful transaction under contractual terms.
BLS E-Services Industry
Key growth drivers for IT Enabled Services industry include
Digitisation: Catalyst for the next growth cycle Technology is expected to play a pivotal role in taking the financial sector to the next level of growth, by helping to surmount challenges stemming from India’s vast geography, which makes physical footprints in smaller locations commercially unviable
Rise in 4G penetration and smartphone usage -India had 1,144 million wireless subscribers as of March 2023, and the number is growing at a steady pace every year.
E-Governance services in India -Initiatives taken by Indian government to further penetrate usage of e-governance
Also Read-KP Green Engineering files IPO papers with SEBI, to list with BSE SME
BLS E-Services Financials –
The company’s revenue from operations has seen a significant increase, reaching ₹243.06 crore during FY23 compared to ₹64.49 Crore in Fiscal 2021. Analyst’s attribute his growth is attributed to the expanded services provided through BLS Touchpoints and BCs.
The profit before tax (PBT) has also shown substantial improvement, with ₹29.58 crore FY23,compared to ₹3.92 crore in Fiscal 2021.
BLS E-Services Limited’s revenue increased by 150.31% and profit after tax (PAT) rose by 277.94% between the financial year ending with March 31, 2023 and March 31, 2022.
RISK Factors
BLS predominantly undertakes fee and commission-based activities, and its financial performance may be adversely affected by its inability to generate income from such activities
Its contracts with respect to E-Governance projects are awarded to its Promoter, BLS International Services Limited by governmental agencies for providing G2C services to the citizens
As a result of its limited operating history, it may not be able to compete successfully, and it may be difficult to evaluate its business and future operating results on the basis of it past performance.
BLS E-Services- Lock-in of Equity Shares Allotted to Anchor Investors
50% of the Equity Shares allotted to Anchor Investors under the Anchor Investor Portion shall be locked-in for a period 90 days from the date of Allotment and the remaining 50% shall be locked-in for a period of 30 days from the date of Allotment.
BLS E-Services Subsidiaries
Draft Red Herring Prospectus, our Company has three Subsidiaries, namely, Starfin India Private Limited, Zero Mass Private Limited and BLS Kendras Private Limited.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions
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Published: 31 Jan 2024, 05:41 PM IST