BLS E-Services IPO

BLS E-Services Limited

₹13,932 /108 sharesMinimum Investment

BLS E-Services IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹135.00₹305.00₹170.00 (125.93%)

BLS E-Services IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
30 Jan ‘24 - 1 Feb ‘24₹13,932108₹129 - ₹135
Issue SizeIPO Doc
310.91Cr
RHP PDF

Subscription Status As on 01 Feb '24, 5:00 PM

  • Qualified Institutional Buyers
    123.30x
  • Non-Institutional Investor
    300.05x
  • Retail Individual Investor
    236.65x
  • Total
    162.40x

About BLS E-Services

BLS E-Services is a technology-enabled digital service provider in India, offering business correspondent services to major banks, assisted e-services, and e-government services at grassroots levels. The company establishes access points for public utility services, social welfare schemes, healthcare, financial, educational, agricultural, and banking services for governments (G2C) and businesses (B2B). These services further extend to citizens in urban, semi-urban, rural, and remote areas. The company focuses on three primary business segments: Business Correspondents Services, Assisted E-services, and E-Governance Services. It generates revenue through registration fees, transaction-based commissions on goods and services, and support service charges in the Assisted E-Services business segment. Their services are offered through BLS Touchpoints, such as PoS services, ticketing services, and assisted e-commerce services, enhancing accessibility for citizens in different regions. The company’s merchants, categorized as BLS Touchpoints and BLS Stores, serve as the interface with consumers. They play a crucial role in delivering goods and services. BLS Touchpoints, comprising registered merchants, offer multiple services, while BLS Stores are branded establishments providing a complete suite of offerings, including select goods for a hands-on experience before purchase. ;
Parent Organisation
BLS E-Services Limited
Founded
2016
Managing Director
Mr. Shikhar Aggarwal

Strengths & Risks

  • BLS E-Services operates on an asset-light business model, relying on merchant partnerships to expand its network. Merchants own or lease premises, and the company provides technology and infrastructure for service delivery. A stringent background check ensures reliability, and leveraging technology minimizes capital expenditure.
  • The company focuses on social and financial inclusion in India, connecting semi-urban, rural, and remote communities through digital and financial services. Starting in 2006-07, their subsidiary, ZMPL, was the first business correspondent in the Indian banking system.
  • BLS E-Services provides multiple cross-selling opportunities, leveraging G2C, B2B, and B2C models. Their platform, including the BLS Sewa app, offers various services like edutech, money transfer, and ticketing.
  • The company has diverse revenue sources, primarily from BLS Touchpoints and BCs. In the six months ending September 30, 2023, the revenue was Rs. 156.17 crores.
  • BLS E-Services has a successful track record of acquisitions, enhancing capabilities, and expanding its reach. Acquisitions like Zero Mass Private Limited and Starfin India Private Limited strengthen the company's position in financial inclusion. At the same time, BLS Kendras Private Limited adds service points in the State of Punjab.
  • BLS E-Services does not directly secure e-governance projects; instead, contracts are awarded to its Corporate Promoter, BLS International Services Limited, and its subsidiary, BLS Kendras.
  • BLS E-Services heavily relies on a single customer, a major PSU bank, with this customer contributing 59.75%, 59.47%, 14.89%, and 27.27% to the company's revenue in various periods. The cancellation of this agreement could significantly impact the business.
  • E-Governance Services are exclusively provided in Punjab, Uttar Pradesh, and West Bengal, making the company vulnerable to adverse changes in these regions, which could affect its business.
  • In the Assisted E-Services business segment, customer revenue is evenly spread over their subscription via monthly portal usage fees and branding fees. The contribution of the Assisted E-Services business to total revenue was 5.61%, 5.01%, 4.62%, and 0.64% for the six months ending September 30, 2023, and the fiscal years 2023, 2022, and 2021, respectively. The data indicates a decline, suggesting a negative impact on future revenue in the event of reduced new or renewed subscriptions
  • The contingent liabilities have the potential to significantly and negatively impact the business, operational outcomes, and financial status of the company. As of September 30, 2023, the contingent liabilities for BSL E-services have amounted to Rs. 22.74 crores.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular129 - 135₹2 Lakh
Shareholder122 - 128₹2 Lakh
High Networth Individual129 - 135₹2 - 5 Lakh
For BLS E-Services IPO, eligible investors can apply as Regular & Shareholder.
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