BLS E-Service Ltd IPO 

BLS E-Services Limited, a digital service provider established in 2016, is set to launch its IPO, offering essential services to banks and supporting e-governance globally. As a subsidiary of BLS International Services Limited, it has over 18 years of experience and is a key player in the field, serving 46 client governments in 64 countries.

The IPO, with a floor price of Rs. 129-135 per share, aims to raise Rs. 310.91 CR and is scheduled for subscription from January 30 to February 1, 2024, with a listing date on February 6, 2024. The company's growing merchant network, reaching 92,427 by March 2023, has led to significant revenue growth from Rs. 6,448.72 lakhs in 2021 to Rs. 24,306.07 lakhs in 2023.

BLS E-Services, with 3,071 employees, is known for its technology-enabled services and robust network. The IPO includes a fresh issue of 24,130,000 shares, and the company's financials for FY 23 show substantial growth with no borrowings. The revenue distribution in FY 23 was primarily from BC Business, followed by E-Governance and Assisted E-Services.

The IPO's objectives include enhancing technology infrastructure, supporting organic growth through BLS Stores, pursuing inorganic growth through acquisitions, and allocations for general corporate purposes. The pre-issue promoter shareholding is 93.80%, held by BLS International Services Limited.

The IPO is priced within Rs. 129 to Rs. 135 per share, resulting in a P/E ratio between 44.70x and 71.42x. The company has strengths such as substantial revenue and profit growth, a partnership with the National e-Governance Division, and a notable market position. However, areas for improvement include limitations in providing e-governance in specific states, vulnerability to revenue impact from issues in those states, and dependence on fees and commissions for income.

As of the latest update, the Grey Market Premium (GMP) for BLS E-Services Limited IPO is Rs. 158. In conclusion, while the IPO offers an opportunity to invest in a company with a strong track record, potential investors are advised to carefully consider the associated risks, strengths, and valuation metrics before making investment decisions

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