BLS E-Services IPO Fully Subscribed in 1 Hour of Opening

30 Jan 2024 , 11:41 AM

On the opening day of the BLS E-Services IPO, the public issue of Rs 310.91 crore has garnered a robust response, being subscribed 1.33 times as of January 30. Click here to subscribe the IPO.

Investors have submitted bids for 5.13 crore shares against the total issue size of 1.37 crore shares. Notably, retail investors exhibited significant enthusiasm, bidding 12.11 times, while high net-worth individuals (HNIs) subscribed 3.92 times the allotted quota. The qualified institutional investors portion subscribed 2.04 times.

Company has also reserved a portion for its employees, which has been subscribed 0.60 times so far.

The IPO, featuring a price band of ₹129-135 per share, is set to conclude on February 1. It comprises an exclusive fresh issue of 2.3 crore shares, with 23,03,000 equity shares reserved for shareholders of promoter BLS International Services at a discounted price of ₹7 each compared to the final issue price. The promoters of the company are BLS International Services, Diwakar Aggarwal, and Shikhar Aggarwal.

Prior to the IPO launch, the company secured ₹126 Crore from anchor investors on January 29.

The net proceeds from the fresh issue, amounting to ₹97.58 Crore, are earmarked for bolstering technology infrastructure, developing new capabilities, and consolidating existing platforms. Additionally, ₹74.78 Crore will be allocated for funding initiatives related to organic growth, including the establishment of BLS stores, and ₹28.71 Crore will be utilized for inorganic growth through acquisitions. The remaining funds will be deployed for general corporate purposes.

Unistone Capital serves as the book-running lead manager for the IPO, and Kfin Technologies is the appointed registrar.

BLS E-Services, a digital service provider, specializes in offering business correspondence services to major banks in India. The company also provides assisted e-services and e-governance services at the grassroots level. Its merchant network is categorized into two segments: BLS touchpoints and BLS stores.