BLS e-Services Limited IPO Closed
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About BLS e-Services Limited
What does BLS e-Services Limited do?
BLS e-Services Limited is a technology-enabled digital service provider in India, offering Business Correspondents services to major banks, Assisted e-Services, and e-Governance Services at grassroots levels. Their extensive network provides access points for various public services, social welfare schemes, healthcare, financial, educational, agricultural, and banking services for governments, businesses, and citizens in diverse areas. Their business model involves collaboration with merchants, categorized as BLS Touchpoints and BLS Stores, who serve as intermediaries between the company and consumers.
The three primary business segments include:
- Business Correspondents Services
- Assisted e-services, and
- e-Governance Services
They act as Business Correspondents to provide banking services on behalf of banks, generating revenue through commissions and fees. Assisted e-Services, offered through BLS Touchpoints, include PoS services, ticketing, and assisted e-commerce, with revenue generated from registration fees, transaction-based commissions, and support service charges. They also facilitate e-governance initiatives by providing ICT-enabled citizen-centric services through BLS Touchpoints, generating revenue through transaction fees and fixed government fees.
What is the issue size of BLS E-Services Limited IPO?
The entire public offer of the company is an entirely fresh issue of up to 2.303 crore equity shares.
Financial information and other valuation metrics (in crores)
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
| Total Assets | 179.46 | 55.93 | 40.58 |
| Total revenue from Operations | 243.06 | 96.70 | 64.50 |
| Net increase / (decrease) in cash and cash equivalents | 9.65 | (1.45) | 3.25 |
| Profit after taxes | 20.33 | 5.40 | 3.14 |
| EBITDA | 36.28 | 8.62 | 5.47 |
Risk factors to consider:
- The company does not directly receive e-governance project awards; instead, these contracts are granted to their Corporate Promoter, BLS International Services Limited, which provides Government-to-Citizen (G2C) services. The subsidiary, BLS Kendras, is responsible for delivering e-governance services.
- The revenue heavily relies on the Business Correspondent (BC) operations conducted by their subsidiaries, ZMPL and Starfin, for banking partners. Potential changes in Reserve Bank of India (RBI) regulations could adversely affect the business, cash flows, and financial condition.
- The company’s heavy dependence on a single customer, a major PSU Bank, poses a significant risk, as the potential cancellation of the agreement could materially impact its business and financial condition.
- The company’s e-Governance services are limited to Punjab, Uttar Pradesh, and West Bengal, and any negative changes in conditions in these regions could harm its business, financial health, and operational results.
- Potential loss of certificates, keys, and passwords may lead to server access issues and data loss, posing a material risk to the business and increasing cybersecurity threats heighten the risk of interruptions, disruptions, excessive costs, or reputational harm from successful attacks on the information technology systems.
Schedule of BLS e-Services Limited IPO
| Issue Period | 30th January to 1st February 2024 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | February 02, 2024 |
| Initiation of Refunds | February 05, 2024 |
| Credit of Shares | February 05, 2024 |
| Date of Listing | February 06, 2024 |
| Mandate end date | February 16, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | March 03, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | May 02, 2024 |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the BLS e-Services Limited IPO?
You can apply for the BLS e-Services Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the BLS e-Services Limited IPO?
You can check the allotment status for the BLS e-Services Limited IPO on the website of the Registrar and Transfer agent.