BLS E-Services Limited’s IPO consists of issuing 2.41 crores of fresh shares aggregating to INR 310.91 crores. The company will utilize the raised funds for tech infrastructure, BLS Stores, acquisitions, and corporate needs for holistic growth.
BLS E-Services Ltd IPO – Important Details
| BLS E-Services IPO Date | January 30, 2024 to February 1, 2024 |
| BLS E-Services IPO Listing Date | February 6, 2024 |
| BLS E-Services IPO Price | INR 129 to INR 135 per share |
| BLS E-Services IPO Lot Size | 108 Shares |
| BLS E-Services IPO Total Issue Size | INR 310.91 crores |
| BLS E-Services IPO Basis of Allotment | February 2, 2024 |
| BLS E-Services IPO Initiation of Refunds | February 5, 2024 |
| BLS E-Services IPO Credit of Shares to Demat | February 5, 2024 |
| BLS E-Services IPO Issue Type | Book Built Issue IPO |
| BLS E-Services IPO Listing At | BSE, NSE |
BLS E-Services Limited IPO – Company Profile
BLS E-Services Limited, a prominent technology-enabled digital service provider, offers business correspondent services to central banks in India, assisted e-services, and e-government services at grassroots levels. Their robust network facilitates delivering diverse essential services to governments, businesses, and citizens across varied regions.
BLS E-Services employs a tech-enabled model, delivering digital services in G2C, B2C, and B2B sectors, focusing on low-internet-access areas. It collaborates with merchants, acting as Business correspondent for banking and facilitating e-governance initiatives, including an MOU with NeGD for UMANG services.
Leveraging merchant engagement, they diversified into e-commerce and insurance broking, enhancing their value. Their offerings promote financial inclusion, empowering women, rural poor, and unbanked individuals. An online portal facilitates comprehensive digital service delivery for citizens and businesses.
BLS E-Services Ltd IPO – Fundamental Analysis
BLS E-Services Ltd. has shown strong growth, increasing profitability, improved liquidity, and a healthier balance sheet over the past three years. These are positive indicators for potential investors.
Revenue Growth:
The company shows impressive revenue growth, from ₹6,448.72 million in 2021 to ₹24,306.07 million in 2023. This indicates a strong market demand for its services and effective business expansion.
Equity Growth:
Equity has increased significantly from ₹967.90 million in 2021 to ₹10,694.03 million in 2023, suggesting robust internal growth and possibly successful equity financing.
Expenses:
The expenses have also increased with revenue, from ₹6,131.13 million in 2021 to ₹21,671.33 million in 2023. This is typical for growing companies but needs to be monitored for efficiency.
Profit and Loss After Tax:
Net profits have grown substantially from ₹314.82 million in 2021 to ₹2,033.18 million in 2023, indicating effective cost management and profitability.
Return on Net Worth (RoNW):
This has decreased from 34.30% in 2021 to 16.46% in 2023. While still positive, the decreasing trend could indicate the company is finding it harder to generate profits with the increased equity.
Diluted EPS (Earnings Per Share):
This has increased from ₹0.52 in 2021 to ₹3.02 in 2023, suggesting increased profitability on a per-share basis.
Total Assets and Liabilities:
Assets have grown significantly, but so have liabilities. The increase in assets is larger than the increase in liabilities, which is a good sign.
Net Asset Value (NAV):
NAV has seen a substantial increase, suggesting an increase in the company’s intrinsic value.
Debt-Equity Ratio:
This has decreased from 1.14 in 2021 to 0.05 in 2023, indicating that the company has significantly reduced its reliance on debt, which is a positive sign.
Current Ratio:
An improvement from 0.67 in 2021 to 1.10 in 2023 shows better short-term liquidity and financial health.
Interest Coverage Ratio:
Increasing from 3.65 times in 2021 to 8.53 times in 2023, this shows the company is increasingly capable of covering its interest obligations, which is a good sign of financial stability.
BLS E-Services Ltd IPO – Financial Information
| Particular | As of 31 March 2021 | As of 31 March 2022 | As of 31 March 2023 |
| Revenue (₹ in Million) | 6,448.72 | 9,669.82 | 24,306.07 |
| Equity (₹ in Million) | 967.90 | 1,506.69 | 10,694.03 |
| Expenses (₹ in Million) | 6,131.13 | 9,162.82 | 21,671.33 |
| Profit and Loss After Tax (₹ in Million) | 314.82 | 537.96 | 2,033.18 |
| RoNW (%) | 34.30 | 36.93 | 16.46 |
| Diluted EPS only (₹) | 0.52 | 0.89 | 3.02 |
| Total Assets (in millions) | 4,058.73 | 5,592.93 | 17,946.59 |
| Total Liabilities (in millions) | 3,090.83 | 4,086.24 | 7,252.56 |
| Net Asset Value (NAV) | 1.53 | 2.42 | 18.76 |
| Debt Equity Ratio | 1.14 | 1.01 | 0.05 |
| Current Ratio | 0.67 | 0.96 | 1.10 |
| Interest Coverage Ratio | 3.65 times | 7.62 times | 8.53 times |
BLS E-Services IPO Peer Comparison
BLS E-Services Limited, with revenues nearly matching EMudhra Limited, at ₹24,629.27 million, shows lower EPS (₹3.02) compared to EMudhra’s ₹8.35. Despite this, BLS has a slightly higher RoNW (16.46%) and a lower NAV per share (₹18.76) than EMudhra’s ₹53.02.
| Company | Total Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| BLS E-Services Limited | 24,629.27 | 10 | NA | 3.02 | 3.02 | 16.46 | 18.76 |
| EMudhra Limited | 24,875.70 | 5 | 62.50 | 8.35 | 8.01 | 15.75 | 53.02 |
BLS E-Services Limited IPO Objective
The main objective of BLS E-Services’ IPO is to allocate funds for technology infrastructure, BLS Store setup, and potential acquisitions to enhance capabilities and drive organic and inorganic growth. Additional funds support general corporate purposes, spanning marketing, brand building, and operational needs.
- Strengthening their technology infrastructure to develop new capabilities and consolidating their existing platforms: The company aims to integrate existing platforms into a unified technology system with a service portal, mobile app, data center, and disaster recovery. Allocations include INR 50.181 crores for portal enhancement and INR 47.4061 crores for data center and recovery, with three years of post-go-live support.
- Funding initiatives for organic growth by setting up BLS Stores: The company plans to allocate INR 74.783 crore from net proceeds for upgrading and renovating 1,576 BLS Touchpoints in 22 states to transform them into BLS Stores. They aim to offer integrated products and services, facilitating assisted e-commerce for customers to experience products before purchase.
- Achieving inorganic growth through acquisitions: The company intends to utilize INR 28.71 from the net proceeds towards such potential acquisitions. The company pursues strategic opportunities for investments, acquisitions, and partnerships to enhance services, expand market presence, and acquire new capabilities through diligent due diligence and board approvals.
- General Corporate Purposes: The company plans to deploy the balance funds towards the general corporate goals, including funding for growth, marketing, brand building, asset development, corporate contingencies, working capital, lease payments, business development, fixed assets, and various other expenses to support the business operations.
BLS E-Services IPO Risks and Challenges
BLS E-Services’ risk consists of revenue hinges on fees influenced by strategy, transaction volume, and external factors. Transaction success depends on BLS Touchpoints, technology, and government discretion. Uncertainties in contract continuity, pending legal proceedings, and potential actions pose revenue risks.
- The company’s revenue relies on fees influenced by business strategy, transaction volume, and external conditions. Transaction volume depends on BLS Touchpoints, technology, marketing, and government discretion for E-Governance, influenced by macroeconomic conditions and global pandemics, affecting revenue and margins.
- The company secures e-government projects through a master service agreement with its promoter, BLS International Services Limited. A non-compete agreement aims to prevent competition, but uncertainties exist regarding contract continuity and renewal, potentially impacting revenues.
- Pending legal proceedings may result in adverse rulings, penalties, and increased liabilities. The company has not made provisions for these matters. Potential legal actions related to products, services, technology, branding, and employee grievances could adversely impact the company.
BLS E-Services Limited IPO – Industry & Market Potential
The Central bank in India has played a pivotal role in fostering digital transactions, emphasizing the development of the digital payment ecosystem. With increased internet penetration, card usage, and evolving consumer behavior, digital transactions are anticipated to thrive in the country.
The rural bank credit accounts grew at a 14% CAGR, and deposit accounts at a 5% CAGR from fiscal 2017 to fiscal 2022. This increase in rural banking accounts is expected to boost the Business Correspondent (BC) business through enhanced transaction value and volume.
Cash in circulation (CIC) in India exhibited a robust 16% CAGR from FY17 to FY23, reaching INR 32.78 trillion in FY23. Despite concurrent digital payment growth, increasing CIC indicates heightened economic activity.
BLS E-Services Limited IPO – Type of Offer
BLS E-Services’ IPO consists of an issue of .41 crores of fresh shares aggregating to INR 310.91 crores.
BLS E-Services IPO Offer Size
The offer size of BLS E-Services’ IPO is a fresh issue of 2.41 crore fresh shares to the public. This amounts to INR 310.91 crores. The proceeds will support tech infrastructure, BLS Stores, acquisitions, and corporate needs for holistic growth.
BLS E-Services Limited IPO Allotment Structure
BLS E-Services Limited’s IPO allocation designates 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Individual Investors (RIIs) in line with SEBI regulations. A portion of the issue has also been set aside for the BLS International shareholders.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- BLS International Shareholder Reservation Portion: A portion of the issue, i.e 10% of the issue is reserved for BLS International shareholders.
How to apply for a BLS E-Services IPO?
To apply for the BLS E-Services Limited through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the BLS E-Services Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for BLS E-Services Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check BLS E-Services IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the BLS E-Services Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the BLS E-Services Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the BLS E-Services Limited IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the BLS E-Services Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
BLS E-Services IPO Offer Registrar
The registrar for the BLS E-Services Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Selenium, Tower B, Plot No. 31-32,
Gachibowli, Financial District,
Nanakramguda, Serilingampally,
Hyderabad – 500 032,
Telangana, India
Telephone: + 91 40 6716 2222
Email: [email protected]
Website: www.kfintech.com
BLS E-Services Limited IPO FAQs
The allotment date of BLS E-Services Limited IPO is February 2, 2024.
The price band of BLS E-Services Limited IPO issue is INR 129 to INR 135 per share.
BLS E-Services Limited is preparing to launch an initial public offering (IPO) involving the insurance of 2.41 crores of new equity shares to the public. The company will use the funds raised for tech infrastructure, BLS Stores, acquisitions, and corporate needs for holistic growth.
The listing date of BLS E-Services Limited IPO is February 6, 2024.
