BLS E-Services IPO - Review, Valuation, Opening Date & GMP

BLS E-Services Limited IPO  - Complete Overview

BLS-E Services Limited, established in April 2016, is a digital service provider offering essential services to banks, assisting in e-services, and supporting e-governance at the ground level in India. As a subsidiary of BLS International Services Limited, it also provides visa, passport, counselling and citizen services globally.

This Indian company uses technology to help governments and diplomatic missions worldwide. It's one of the top two global players in this field and has over 18 years of experience.

The company serves 46 client governments in 64 countries, using its technology platform to assist state and provincial governments in Asia, Africa, Europe, South America, North America, and the Middle East. Notably, it is the only listed company in India engaged in this type of work.

BLS E-Services, with 3,071 employees as of June 30, 2023, is recognized for its technology-enabled services and robust network. Investors are watching closely, considering the company's financial health and market position as it takes a strategic step towards going public.

 

BLS E-Services Limited IPO Overview

With a growing merchant network reaching 92,427 by March 2023, the company reported significant revenue growth from Rs. 6,448.72 lakhs in 2021 to Rs. 24,306.07 lakhs in 2023. The IPO is set to launch with a floor price of Rs. 129-135 per share, aiming for listing on February 6, 2023.

BLS E-Services Limited IPO date is slated to be open for subscription from January 30, 2024, to February 1, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

The total issue size of this IPO amounts to Rs. 310.91 CR. The company has reserved 75% for institutional investors, 10% for non-institutional investors, and 15% for retail investors. 

 

 

BLS E-Services Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	30 January 2024
IPO Closing Date	1 February 2024
IPO Allotment Date	2 February 2024
Refund initiation	4 February 2024
IPO Listing Date	6 February 2024

 

BLS E-Services Limited IPO Details

IPO Opening & Closing Date	30 January to 1 February 2024
Face value	Rs. 10 per share
Issue Price	Rs. 129 - Rs. 135 per share
Lot Size	108 shares
Price of 1 lot	Rs. 14,580
Total Issue Size	24,130,000 shares (aggregating up to Rs. 310.91 CR)
Fresh issue	24,130,000 shares (aggregating up to Rs. 310.91 CR)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

 

BLS E-Services Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	108	Rs. 14,580
Maximum Lot Investment (Retail)	13 lot	1,404	Rs. 1,89,540
Minimum Lot Investment (HNI)	14 lot	1,512	Rs. 2,04,120
Maximum Lot Investment (HNI)	68 lot	7,344	Rs. 9,91,440

 

BLS E-Services Limited IPO Reservation

QIB Shares Offered	Maximum 75%
Retail Shares Offered	Minimum 10%
Other Shares Offered	Minimum 15%

 

Company Financial

Company financials for FY 23 show growth with no borrowings.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	213.77	179.47	55.93
Total Revenue	158.05	246.29	98.40
PAT	14.68	20.33	5.38
Net worth	120.37	106.94	15.07
Total Borrowings	0.00	0.00	8.76

 

Revenue Distribution Segment-Wise

In FY 23, the revenue distribution was primarily from BC Business, followed by E-Governance and Assisted E-Services.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
BC Business	66.05	61.02	22.23
E-Governance	28.34	33.98	73.15
Assisted E-Services	5.61	5.01	4.62
Total	100%	100%	100%

 

Revenue by Operations

FY 23 revenue from operations increased significantly compared to FY 22.

(Amount in Lakhs)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	15,617.88	24,306.07	9,669.82
Other Income	186.65	323.20	169.74
Total Revenue	15,804.53	24,629.27	9,839.56

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Enhancing technology infrastructure for new capabilities and platform consolidation – INR 97.59 crore

• Supporting organic growth through the establishment of BLS Stores – INR 74.78 crore

• Pursuing inorganic growth through acquisitions – INR 28.71 crore

• Allocations for general corporate purposes

 

Promoters of BLS E-Services Limited IPO

1. BLS International Services Limited

Pre-issue Promoter Shareholding	93.80%
Post-issue Promoter Shareholding

 

BLS E-Services Limited IPO Lead Managers

•  Unistone Capital Pvt Ltd

 

Peers of BLS E-Services Limited IPO

The company seems to have a higher face value compared to its peers.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
BLS E-Services Limited	10	44.70	3.02
Emudhra Limited	5	56.27	8.35

 

 

Evaluation

The IPO is priced within the range of Rs. 129 to Rs. 135 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 3.02 from the last year, the resulting P/E ratio is 44.70x.

- Taking into account the weighted EPS of Rs 1.89 for the last three years, the P/E ratio amounts to 71.42x.

 

Consequently, the IPO price range, exhibiting a P/E ratio between 44.70x and 71.42x, appears neutral when compared to its peer, Emudhra Limited, with a P/E of 56.27.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

- Experienced a substantial increase in revenue from March 2021 to March 2023.

- Achieved a significant 545.82% growth in profit after tax during the same period.

- Formed a partnership with the National e-Governance Division for UMANG services on its digital platform.

 

IPO's Weaknesses

- Limited to providing e-Governance in specific states.

- Vulnerable to revenue impact from issues in those states.

- Highly dependent on fees and commissions for income.

- Susceptible to financial strain if fees or commissions are altered.

 

 

IPO GMP Today

The Latest GMP of BLS E-Services Limited IPO is Rs. 155.

 

Conclusion

In conclusion, BLS E-Services Limited IPO presents an opportunity for investors to participate in a company with a strong track record in the digital services sector. With robust financials, strategic objectives, and a notable market position, the IPO is poised to attract attention. However, potential investors are advised to carefully consider the risks, strengths, and valuation metrics before making investment decisions. Stay tuned for the latest updates on this IPO through our social media channels and ensure you stay informed about the market trends. Happy investing

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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