Introduction
BLS E-Services, with its Rs 310.91-crore initial public offering (IPO), has garnered significant attention on the first day of bidding, demonstrating strong investor interest. The IPO, open for subscription until February 1, presents a fresh issue of 2.3 crore shares within a price band of Rs 129-135 per share.
Subscription Details
On January 30, the opening day of the IPO, BLS E-Services witnessed a subscription of 1.33 times. Notably, the total bids received amounted to 1.82 crore shares, surpassing the issue size of 1.37 crore shares. The retail investors segment demonstrated remarkable enthusiasm, oversubscribing by an impressive 5.46 times. High net-worth individuals (HNIs) also participated actively, subscribing 1.97 times the allotted quota.
Price Band and Offer Details
The IPO’s price band is set at Rs 129-135 per share, with a scheduled closing date on February 1. The public offer exclusively comprises a fresh issue of 2.3 crore shares. Additionally, 23,03,000 equity shares are reserved for shareholders of the promoter entity, BLS International Services, at a discounted rate of Rs 7 each to the final issue price. The promoters of the company are BLS International Services, Diwakar Aggarwal, and Shikhar Aggarwal.
Anchor Investor Participation
Ahead of the IPO launch, BLS E-Services successfully raised Rs 126 crore from anchor investors on January 29. Prominent participants among the anchor investors include Sixteenth Street Asian Gems Fund, Saint Capital Fund, Silver Stride India Global Fund, Aries Opportunities Fund, and Aidos India Fund.
Utilization of Proceeds
The net proceeds from the fresh issue, amounting to Rs 97.58 crore, will be allocated for enhancing technology infrastructure, developing new capabilities, and consolidating existing platforms. An additional Rs 74.78 crore is earmarked for funding initiatives to foster organic growth, specifically through the establishment of BLS stores. Moreover, Rs 28.71 crore is allocated for inorganic growth through strategic acquisitions, with the remaining funds directed towards general corporate purposes.
Grey Market Performance and Other Details
In the grey market, where shares trade unofficially before IPO allotment and listing, BLS E-Services shares are commanding a premium of 117 percent. Unistone Capital is the book-running lead manager for the IPO, and Kfin Technologies serves as the registrar.
Company Overview
BLS E-Services specializes in digital services, providing business correspondence services to major banks in India and delivering assisted e-services and e-governance services at the grassroots level. The company’s merchant network is organized into two categories: BLS touchpoints and BLS stores.
