BLS E Services Ltd IPO
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Get all the details BLS E-Services Ltd IPO
Overview of BLS E Services Ltd IPO
IPO Date
30-Jan-2024 to 1-Feb-2024
Face Value
₹ 10 per share
Price Band
₹ 129 to 135
Lot Size
108 shares Share
Issue Size
23,030,000 shares (aggregating up to )
Listing At
BSE, NSE
Basis of Allotment
2-Feb-2024
Initiation of Refunds
5-Feb-2024
Credit of Shares to Demat
5-Feb-2024
Listing Date
6-Feb-2024
Cut off time for UPI Mandate
1-Feb-2024
Objective of BLS E Services Ltd IPO
The net proceeds from the IPO (worth Rs 311 crore) will be utilized to strengthen its technology infrastructures to develop new capabilities and consolidate its existing platforms (Rs 97 crore), to fund organic growth initiatives by set up of BLS stores (Rs 75 crore), to fund inorganic growth through acquisition (Rs 29 crore) and the balance (Rs 110 crore) for any other general corporate purpose.
About BLS E Services Ltd IPO
BLS E-Services (BLS) is a digital service provider, offering services such as business correspondence services to major banks, assisted e-services and e-governance services at grassroot levels in India. The company’s service offerings can be categorized into three parts- Business Correspondents Services, Assisted E-services and E-Governance Services. The company is the subsidiary of BLS International Services. It aims to promote economic independence and sustainable livelihood for the rural population, women, and un-banked individuals by connecting them with financial services. As of the end of September 30th,2023, the company offered its services via 1,016 BLS stores and 98,034 BLS touch points.
BLS E Services Ltd IPO Financials
Particulars (in Cr) | H1 FY24 | FY23 | FY22 | FY21 |
---|---|---|---|---|
Total Revenue Annual | 156 | 243 | 97 | 64 |
Operating Expenses Annual | 136 | 210 | 90 | 60 |
Operating Profit Annual | 20 | 33 | 7 | 5 |
Depreciation | 1 | 3 | 1 | 0 |
Interest Annual | 0 | 4 | 1 | 1 |
Tax Annual | 6 | 7 | 1 | 1 |
Net Profit Annual | 15 | 20 | 5 | 3 |
Total Share Holder Funds | 120 | 107 | 15 | 10 |
Fixed Asset Annual | 1 | 1 | 0 | 0 |
Total Non Current Asset | 111 | 109 | 29 | 20 |
Total Current Asset | 103 | 70 | 27 | 21 |
Total Asset Annual | 214 | 179 | 56 | 41 |
Book Value Per Share | ₹ 13.2 | ₹11.8 | ₹1.7 | ₹1.1 |
ROE | 12.9% | 33.3% | 43.5% | 38.9% |
ROCE | 16.7% | 30.6% | 28.4% | 29.7% |
Total Debt To Total Equity | 0.1 | 0.1 | 1.0 | 1.1 |
EBIDTA | 13.2% | 13.6% | 7.2% | 7.3% |
Cash From Operating | 20 | 29 | 20 | 9 |
Cash From Investing | -13 | -66 | -14 | -1 |
Cash From Finance | -1 | 46 | -8 | -5 |
Net Cash Flow | 6 | 10 | -1 | 3 |
Promoter's Holding
Total Share Capital
Offered to Public
Promoter’s Holding(Pre-Issue)
93.80%
Promoter’s Holding(Post-Issue)
68.90%
Strengths
1. BLS E-Services follows an asset-light business model. The premises from which BLS Touchpoints and the BLS Stores operate are owned / leased by their merchants and BLS provides them with necessary technology and other infrastructure (as applicable) enabling them to extend their services to the end consumers.
2. It provides multiple cross-selling and up-selling opportunities along with a wide reach for customer acquisition.
3. It has diverse sources of revenue and negligible customer acquisition and retention costs.
4. It has a successful track record of acquisitions. It acquired (i) Zero Mass Private Limited in June 2022, a business correspondent of banks for financial inclusion (ii) Starfin India Private Limited in August 2018, a business correspondent of banks for financial inclusion and (iii) BLS Kendras Private Ltd in October, 2022, which had 365 Sewa Kendras, in the State of Punjab at the time of acquisition.
Weaknesses
The following points should be kept in mind:
1. The business is heavily dependent on revenue from fees and commissions. If it is unable to generate income from such sources, it can affect its financial performance.
2. The company doesn’t receive the e-governance projects. All the contracts are awarded to its corporate promoter, BLS International Services.
3. It is dependent on, and derives a substantial portion of revenue from, a single customer, one of the largest PSU Bank which accounted for ~60% revenue in six months period ended September 30, 2023.
4. A substantial portion of revenue is generated from the BC business operated by its subsidiaries for their banking partners. Any change in the RBI policy towards the banking sector can adversely affect the business.
5. It provides E-Governance Services only in the states of Punjab, Uttar Pradesh, and West Bengal, and accordingly any adverse changes in the conditions affecting these regions can adversely affect business.
The BLS E-Services IPO is a main-board IPO consisting of 23,030,000 equity shares with a face value of ₹10, which amounts to a total of ₹310.91 Crores. The price range for this issue is set at ₹129 to ₹135 per share, and the minimum order quantity is 108 shares.
The IPO will be open for subscription from January 30, 2024, until February 1, 2024.
KFin Technologies Limited is the registrar for this IPO, and the shares are expected to be listed on both the BSE and NSE.for this IPO, and the shares are expected to be listed on both the BSE and NSE.
The BLS E-Services IPO opens on January 30, 2024, and closes on February 1, 2024.
If you are interested in applying for the BLS E-Services IPO online, there are two payment methods available: UPI and ASBA. You can apply through the ASBA IPO application, which is available in the net banking section of your bank account. Alternatively, you can use the UPI IPO application, which is offered by brokers who do not provide banking services. For more detailed information on how to apply for the IPO online through Zerodha, Upstox, 5Paisa, Nuvama, ICICI Bank, HDFC Bank, and SBI Bank, please read on.
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