Spectacular Entry: BLS E-Services IPO Delivers Massive 129% Premium

6 Feb 2024 , 09:58 AM

BLS E-Services made a spectacular entrance into the stock market, witnessing a remarkable debut with a premium of 129% over its issue price. The company’s shares debuted at ₹305 on the NSE, marking a premium of 125.93% compared to the issue price of ₹135 per share. Similarly, on the BSE, the shares opened at ₹309 per share, reflecting a premium of 128.89%.

The initial public offering (IPO) of BLS E-Services, valued at ₹311 crore, garnered significant investor interest during its subscription period from January 30 to February 1. With a subscription rate of 162.47 times, it stood out as the most subscribed IPO launched in the current fiscal year. High net worth individuals led the charge, subscribing 300.14 times the allotted quota, followed by retail investors at 237 times, and qualified institutional buyers at 123.3 times their allocated portion.

BLS has demonstrated robust financial performance, with its FY23 revenue reaching ₹243.1 Crore, reflecting a Compound Annual Growth Rate (CAGR) of 56% during the FY21-23 period. Similarly, its net profit surged to ₹20.3 crore, exhibiting a CAGR of 86% over the same period. The company boasts a strong margin profile, with its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin expanding by 645 basis points Year-on-Year (YoY) to 13.6% in the fiscal year ended March FY23. The management aims to further enhance these margins through planned investments in technology and the expansion of profitable BLS stores.

The BLS E-Services IPO comprised solely of a fresh issue component, with the price band set at ₹129-135 per share.