BLS E-Services Ltd IPO

Last Updated on October 4, 2023 by BFSLTeam BFSLTeam

BLS E-Services Ltd has filed a DRHP (Draft Red Herring Prospectus) with SEBI with the aim of raising funds via an IPO. It has proposed a fresh issue of approximately 2.41 crore equity shares to fund the strengthening of its technology infrastructure. 

Unistone Capital Private Ltd is the book-running lead manager of the issue while KFin Technologies is the registrar. The company is awaiting SEBI’s green light for this public issue, after which it will make preparations with the help of the merchant banks. If you are interested in BLS E-Services IPO, we have put together the essential details.

Also Read: Benefits of Investing in IPO

About the Company

BLS E-Services Ltd. is one of the leading digital service providers in the country. This Delhi-based company offers services such as business correspondence services to major banks, assisted e-services and e-governance services at grassroots levels. It also provides the delivery of essential public utility services, healthcare, financial, agricultural, educational, and banking services for governments.

The company offers digital and physical products or services in B2B, B2C, and G2C in rural areas where there is barely any internet connectivity. It aims to promote economic independence and sustainable livelihood for the rural population, women and unbanked individuals by connecting them with financial services.

The company provides e-services through partner retailers and stores called BLS Touchpoints, including ticketing services, PoS services, assisted e-commerce, etc. These partners also allow BLS E-Services to provide citizen-centric services; there are over 200 government services it provides under departments like Housing & Urban Development, Health & Family Welfare and more.

As of the end of FY23, the company offers its services via 402 BLS stores and 92,427 BLS Touchpoints. 

IPO Details and Objectives

BLS E-Services Ltd has already filed its DRHP with SEBI and is preparing for an IPO which will be an entirely fresh issue. The fresh issue is proposed to comprise 2,41,30,000 equity shares. There’s no offer for sale in this IPO.

The proposed objectives for the fresh issue are as follows:

• To strengthen its technology infrastructures to consolidate its existing platforms
• Fund organic growth initiatives mainly by setting up BLS Stores
• To fund inorganic growth through acquisition
• For any other general corporate purposes

Company Financials 

Here is a summary of the financial statements of BLS E-Services Ltd:

Particulars	For the Financial Year Ending (Rs. Millions) Except EPS
	March 31, 2023	March 31, 2022	March 31, 2021
Total Assets	17,946.59	5,592.93	4,058.73
Total Liabilities	6,801.38	4,086.24	3,090.83
Total Expenses	21,671.33	9,162.82	6,131.13
Total Revenue	24,629.27	9,839.56	6,523.35
Profit/Loss After Tax	2,033.18	537.96	314.82
EBITDA	3,628.96	862.07	547.29
EPS (Basic and Diluted)	3.02	0.89	0.52

Strengths of the Company

Here are some of the strengths of BLS E-Services Ltd:

• BLS E-Services Ltd strictly follows an asset-light business model. The company has its own technology platform and is continuously developing the same for further innovations and improvements. It allows the company to cater to a wide range of merchants and their diverse requirements.
• It provides easy access to technology at the very grassroots level so that its services and opportunities drive financial inclusion and trust. The company’s resources and understanding of regional needs make it the perfect choice for implementing different government schemes.
• The company is operational across various models such as B2B, B2C and G2C. As a result, it is exposed to plenty of cross-selling and up-selling opportunities along with a wide reach for customer acquisition.
• The company has designed its business model in a way that provides it with diverse sources of revenue along with negligible customer retention and acquisition costs.

Risks Involved

Here are some of the risk factors associated with the business activities of BLS E-Services Ltd.

• A significant portion of the company’s revenue comes from fees and commissions. If BLS E-Services is unable to generate income from such sources, it can greatly hurt its financial performance.
• As it has limited experience, it might not be able to compete successfully with other players in the market.
• A significant portion of its revenues are generated by the B2C segment from its banking partners. As the banking sector is entirely governed by RBI, therefore any changes in the RBI policies can adversely affect its overall profitability.

Also Read: Risk of investing in IPO

Summary

To summarise, BLS E-Services Ltd is one of the leading digital service providers in India engaged with providing correspondence services, e-governance services and more. It is preparing to launch its IPO and has filed its DRHP with SEBI with the objective of funding its infrastructural developments.

If you want to apply for this IPO, consider checking its risk factors, strengths, line of business and financials. Keep an eye on our website for more updates on the upcoming IPO.

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