BLS E-Services IPO intends to raise Rs 310.91 crores. The issue is entirely a fresh issue of 2.3 crore shares. BLS-E Services Limited is a digital service provider that offers Business Correspondence services to major banks in India, Assisted E-Services, and E-Governance Services at the grassroots level.
| IPO opens | Jan 30, 2024 |
| IPO Closes | Feb 01, 2024 |
| IPO Size (Rs.) | ₹310.91 Cr |
| IPO Size (shares) | 23,030,000 shares |
| Breakup | Fresh issue only |
| Face Value: | ₹10per share |
| IPO Price in Rs. | ₹129 to ₹135 (Shareholder discount of ₹ 7 per share) |
| Minimum Lot | 108 Shares |
| Listing At | NSE , BSE |
| Share Holder quota | ~10% |
| QIB | ~75 % |
| NII Quota | ~15 |
| Retail Quota | ~10% |
| Lead Manager | Unistone Capital Pvt Ltd |
| Registrar | Kfin |
About BLS E-Services:
- BLS E-Services Ltd was incorporated in 2016 and operates as a subsidiary of BLS International Services Ltd .
- BLS International Services Ltd is listed entity with a proven track record of delivering visa, passport, and various citizen services to state and provincial governments across Asia, Africa, Europe, South America, North America, and the Middle East
- BLS E-Services Limited is a leading technology enabled digital service provider, providing
- (i) E-Governance Services
- (ii) Business Correspondents services
- (iii) Assisted E-services.
- BLS E-Services Limited through tech-enabled integrated business model provides digital and physical products and services in the G2C, B2C, B2B categories particularly in semi-urban, rural and remote areas where penetration of internet is low and citizens need assistance in availing basic technology enabled services.
- BLSe collaborates with various merchants spread across India for delivery of its products and services to the citizens.
- BLS E-Services Limited through its Subsidiaries, namely Zero Mass Private Limited (ZMPL) and Starfin., acts as a Business Correspondents and provides various banking products and services on behalf of banks including opening savings, recurring deposit accounts, cash deposits, withdrawals, remittance, transfer, bill collection services,.
- BLSe also provides various assisted e-services like PoS services, ticketing services, assisted e-commerce services, etc. through its BLS Touchpoints
- As on September 30, 2023, BLS E-Services Limited has 98,034 BLS Touchpoints which includes 1,016 BLS stores spread across India.
- As of June 30, 2023, the company has a total of 3,071 employees, including 2,413 contract employees.
BLS E-Services IPO: Financials
| Particulars (₹ in cr.) | Sep-23 | 2023 | 2022 | 2021 |
| Revenue from operations | 156.18 | 243.06 | 96.70 | 64.49 |
| Other Income | 1.87 | 3.23 | 1.70 | 0.75 |
| Total Income | 158.05 | 246.29 | 98.40 | 65.23 |
| Cost of Services | 105.23 | 161.56 | 63.52 | 41.95 |
| Employee benefit expenses | 14.16 | 23.23 | 6.41 | 3.81 |
| Other expenses | 16.16 | 25.21 | 19.85 | 14.00 |
| EBITDA | 22.50 | 36.29 | 8.62 | 5.47 |
| Finance costs | 0.34 | 3.93 | 1.02 | 1.48 |
| Depreciation & Amortisation | 1.38 | 2.78 | 0.82 | 0.07 |
| Total Expenses | 137.27 | 216.71 | 91.62 | 61.31 |
| Profit bef exceptional items & tax | 20.78 | 29.58 | 6.78 | 3.92 |
| Exceptional items | – | 2.60 | – | – |
| Profit before tax | 20.78 | 26.98 | 6.78 | 3.92 |
| Tax expenses | 6.09 | 6.65 | 1.40 | 0.77 |
| Profit after Tax | 14.68 | 20.33 | 5.38 | 3.15 |
| Post issue Share Capital | 90.86 | |||
| FV | 10.0 | |||
| IPO price | 135.0 | |||
| EPS Fy23 | 2.2 | |||
| PE Fy23 | 60.3 | |||
| EPS Fy24 (annualized) | 5.0 | |||
| PE Fy24 (annualized) | 27.3 | |||
| Market cap in cr | 1,226.6 | |||
| Market cap / Sales | 5.05 |
Anchor: BLS E-Services IPO
BLS E-Services IPO: Salient Points
- Company has undertaken a Pre-IPO Placement by way of private placement of 11,00,000 Equity Shares for cash at a price of ₹125 per Equity Share aggregating to ₹1,375.00 lakhs,
- The net proceeds from the fresh issue will go towards:
- Strengthening the technology infrastructure to develop new capabilities and consolidating existing platforms
- Funding initiatives for organic growth by setting up of BLS Stores
- Achieving inorganic growth through acquisitions
- General Corporate Purposes
- The company plays a substantial role in supporting key government initiatives aimed at financial inclusion like Pradhan Mantri Jan Dhan Yojana (PMJDY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
- BLS Provides various EARN MONEY Services to its agents in this B2B module like Ayushmaan Bharat, PAN Card Service, Recharges (Telecom, DTH, FasTag, Data Card), Bill Payments (Electricity, Water, Gas, Telephone, etc.), Money Transfer (DMT), Travel Booking (including IRCTC), Aadhaar Payments (AEPS), Mini ATM, Assisted E-Commerce (Amazon Easy & Flipkart), Passport & Visa Applications, Insurance (Bike, Car, Commercial Vehicle, Health, Travel & Life), E-Learning (Make Money Online), Hamara Clinic (Doctor Consultation), Refurbished Mobile Phones, etc. with Best In the Industry Commission policy. We are authorized partners of Banks and relevant service providers.
- Peers
| Company/₹ cr | CMP (₹) | Revenue(cr) | Net Profit(₹ cr) | NPM | PE | Mcap (cr) | Macp/sales | RONW% |
| BLS E- Services | 135 | 243.6 | 20.33 | 8.3% | 60(27) | 1226 | 5.0 | 16.46% |
| EMudhra Limited | 450 | 249 | 61 | 24.5% | 57.4 | 3,727 | 15.0 | 15.75% |
- BLS E-Services Limited Subsidiary, namely Zero Mass Private Limited (ZMPL) was the first ever business correspondent in the history of Indian banking system and operates the largest BC network for SBI.
- The company has experienced consistent and robust growth in both revenue and net profit over the years. In FY23, the revenue reached Rs 243 crore, reflecting an impressive 150% yoy growth from FY22. In the same period , net profit went from Rs 5.38 crore to Rs 20.33 crore in FY23,showing 278% growth.
- While acting as a digital service provider for key Govt. Initiatives, the company gets multiple opportunities for cross-selling and up-selling, coupled with a good reach reach for customer acquisition.
- It has presence across B2B, B2C and G2C. A significant portion of revenues of company are generated by the B2C segment from its banking partners
- BLS E-Services follows an asset-light business model.
- BLS E-Services IPO is coming at a PE ratio of 60x (fy23 earnings) and 27x (fy24 annualized earnings.
- I will apply in BLS E-Services IPO. its business model is characterized by diverse revenue sources and minimal customer acquisition and retention costs, cross selling opportunities, organic and inorganic growth and growing scope in offering digital services to citizens.
- GMP as heard on Social Media may be around Rs. 140.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.