BLS E-Services IPO Launch Tomorrow: 10 Key Points to Know Before Investing
BLS E-Services, a digital service provider in India, is launching its initial public offering (IPO) on Tuesday, January 30th, 2024. Here are 10 key points you should know before considering investing in the IPO:
1. Business Overview: BLS E-Services offers a diverse range of services, including Assisted E-Services, E-Governance Services at the grassroots level, and Business Correspondence services to major banks. This extensive network facilitates B2C and G2C services across various sectors like social welfare, healthcare, banking, and education.
2. Key Services: The company focuses on three core areas: Business Correspondent Services, Assisted E-Services, and E-Governance Services. They cater to both urban and rural populations through a vast network of touchpoints and stores.
3. Growth Potential: BLS E-Services demonstrated impressive growth in its financials. Between March 2022 and March 2023, its profit after tax surged by 278% and revenue increased by 150%.
4. IPO Dates & Price Band: The subscription window opens on January 30th and closes on February 1st. The price band is set between ₹129 and ₹135 per equity share.
5. Lot Size & Anchor Investors: The minimum investment requires purchasing a lot of 108 shares. Anchor investor allocation happened on January 29th.
6. Issue Details: This is a fresh issue of 2.3 crore shares by BLS International Services, without an offer-for-sale component.
7. IPO Proceeds Usage: The company plans to utilize the funds for expanding its network of BLS Stores, pursuing inorganic growth, strengthening technology infrastructure, and general corporate purposes.
8. Listing & Allotment Timeline: Share allotment finalization is expected on February 2nd, with refunds on February 5th and share credit to demat accounts happening the same day. Listing on BSE and NSE is tentatively scheduled for February 6th.
9. Lead Manager & Registrar: Kfin Technologies Limited is the registrar, and Unistone Capital Pvt Ltd acts as the book running lead manager.
10. Reservation & GMP: 75% of shares are reserved for QIBs, 15% for NIIs, and 10% for retail investors. BLS International shareholders get a ₹7 discount per share. Grey market premium (GMP) suggests a strong listing, ranging from ₹60 to ₹160.
