BLS E-Services IPO Day 3: Issue subscribed over 162 times, Retail and NII see strong demand; details here

The Non-Institutional Investors (NII) segment of the offering witnessed the highest subscription, reaching an impressive 300 times, with retail investors closely following at 236 times, and the Qualified Institutional Buyers (QIB) portion achieving a subscription rate of 123 times on the final day of bidding.

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On the first day, the IPO was subscribed over 15.93 times, with retail and NII category being booked 50.72 and 29.92 times. Meanwhile, the issue was booked over 43,09 times, with retail category receiving the maximum interest 127 times and NII receiving application 94.36 times on the second day, as per data by Chittorgarh.com.

BLS E-Services Limited IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. A discount of ₹7 per equity share is being offered to BLS International shareholders reservation portion.

The allocation of BLS E-Services IPO shares is expected to be concluded this Friday, with the shares set to be listed on February 6.

Market analysts express optimism regarding the company’s future prospects, citing the government’s strong commitment to ‘Digital India’ and the favorable financial performance the company has demonstrated over the recent years. This positive trajectory augurs well for the anticipated success of the IPO.

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BLS E-Services IPO details

BLS E-Services IPO solely comprises of fresh issue of 2,30,30,000 crore equity shares by the subsidiary of the listed business BLS International Services. There is no offer-for-sale component to the BLS E-Services IPO.

In consultation with the book running lead manager (BRLM), BLS E-Services IPO conducted a pre-IPO placement through a private placement of 11,00,000 equity shares for cash at a price of ₹125 per equity share, totalling ₹1,375 lakhs. The size of the fresh-issue of equity shares has been reduced to 2,30,30,000 equity shares.

The funds generated from the new issue will be directed towards fortifying our technological infrastructure to cultivate new capabilities and unifying our current platforms. Additionally, the proceeds will support initiatives for organic expansion, involving the establishment of BLS stores, as well as fueling inorganic growth through strategic acquisitions. These resources will also be allocated for general corporate purposes.

BLS E-Services stands as a technology-driven digital service provider, specializing in delivering business correspondent services to major banks in India. The company is dedicated to providing assisted e-services and e-governance solutions at the grassroots level.

With a robust network, BLS E-Services establishes access points for the efficient delivery of crucial public utility services, social welfare programs, healthcare, financial services, educational initiatives, agricultural support, and banking services. The company extends its services to both government entities and businesses, offering a diverse range of business-to-consumer (B2C) services.

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In the fiscal year 2023, BLS E-Services witnessed a remarkable financial performance, with a year-on-year income surge of 151%, reaching ₹246 crore. Profits also exhibited substantial growth, soaring by 278% to ₹20.33 crore. For the six-month period ending September 2023, the company reported a total income of ₹158 crore, with profits standing at ₹14.68 crore.

As BLS E-Services prepares for its Initial Public Offering (IPO), Unistone Capital has assumed the role of the sole book-running lead manager, while Kfin Technologies has been appointed as the registrar for the IPO process.

BLS E-Services IPO GMP today

After experiencing a strong surge in number of subscriptions, the company’s Grey Market Premium (GMP) has witnessed a remarkable increase in the unlisted market, currently standing at 125% above the initial offer price. The IPO was initially priced at ₹135 at the upper end.

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Published: 01 Feb 2024, 08:54 PM IST