BLS E-Services Limited IPO Details Issue Price, Date, News, Allotment Status, GMP, Link, Updates

BLS E-Services Limited IPO Company Details:

BLS E-Services Limited (BLSEL) is a technology-enabled digital service provider that offers assisted e-services, e-government services at the local level in India, and business correspondence services to major Indian banks. The company has a strong network of access points that facilitate the provision of government-to-consumer (G2C) touch points, including social welfare programs, healthcare, banking, financial, educational, and utility services. Through its 97,018 BLS touchpoints and 1016 BLS Stores, BLSEL offers seamless services throughout India. The majority of these locations are found in rural, semi-urban, and isolated places with low internet penetration rates, where residents require assistance in accessing technology-enabled services. The company’s business correspondents division offers, through its subsidiaries, ZMPL and Starfin, products and services such as opening savings accounts, recurring deposit accounts, cash deposits, withdrawals, remittance, transfers, and bill collection services. The Company generates revenue from monthly commissions, Registration Fees and transaction-based commissions. In addition, it offers tickets, aided e-commerce, and point-of-sale services. Furthermore, through its touchpoints, the Company offers a range of citizen-centric services enabled by information and communication technology (“ICT”), hence facilitating the delivery of different e-governance projects of the State Governments in India. This place offers PAN and Aadhar registration, property registration, and other related services.

IPO-Note	BLS E-Services Limited
Rs.129 – Rs.135 per Equity share	Recommendation: Apply for the Long Term

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BLS E-Services Limited IPO Details:

BLS E-Services Limited IPO Strengths:

• BLSEL has an asset light business model as it operates on the franchise model where its merchants operate the BLS touchpoints, which are owned or leased by the merchants.
• The company has recently launched the BLS Sewa App, a one-stop shop for numerous services like recharges, money transfers, setting demat accounts, booking airline tickets, and much more.

BLS E-Services Limited IPO Key Highlights::

• Revenue of the co. has grown from Rs.64 Cr. in FY21 to Rs.243 Cr. in FY23 with a very strong CAGR of 55.6%; while the profit has grown with a huge CAGR of 86.2% from Rs.3 Cr. in FY21 to Rs.20 Cr. in FY23.
• Co.’s EBITDA Margin & PAT Margin stand healthy at 14.9% & 8.4% respectively in FY23.
• As of FY23, ROCE & ROE ratios are at 30.62% and 33.33% respectively.
• Company has reduced its debt over the period and its current debt to equity ratio stands at 0.07x.

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BLS E-Services Limited IPO Financial Performance:

BLS E-Services Limited IPO Shareholding Pattern:

Particulars	Pre- Issue	Post Issue
Promoters Group	92.28%	68.89%
Others	7.72%	31.11%

Source: RHP, EWL Research

BLS E-Services Limited IPO Risk Factors:

• Approximately 60% of the company’s revenue comes from a single client—a sizable PSU bank. Furthermore, there are no dependable long-term agreements between the Company and the bank.
• It provides e-governance services only in Punjab, Uttar Pradesh & West Bengal, any adverse changes in the conditions affecting these regions can impact its business.
• All the E-Governance projects are awarded to the Company’s promoter BLS International and not BLS E-Services, which is responsible for 28% of its revenue.

BLS E-Services Limited IPO Outlook:

BLSEL is offering the P/E of 60x on the upper price band, compared to 56.27x of its peer, EMudhra Limited. However the business of both company is not comparable on apple-to-apple basis. The company promotes financial inclusion by utilizing Aadhaar to facilitate banking access and money transfers. Their emphasis on innovation and security paves the path for a more promising and convenient digital future for everybody. Moreover, in alignment with the government’s Digital India initiative, BLSEL appears to have a favorable outlook. The valuation of the company looks reasonable. Hence, we recommend investors to apply in the offering with the long term perspective.

BLS E-Services Limited IPO FAQ