BLS E-Services Limited IPO

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This company, as described in the overview, operates as a versatile and expansive digital service provider in India, focusing on three core business segments: Business Correspondent Services, Assisted E-Services, and E-Governance Services. The overarching goal is to deliver a range of essential services to both urban and rural communities, particularly where internet penetration is low.

  1. Business Correspondent Services: Here, this company acts as a bridge between banks and customers, particularly in underbanked areas. Services include account openings, deposits, withdrawals, remittances, and bill collections. These are facilitated through their subsidiaries, ZMPL and Starfin, with revenue generated from commissions and registration fees.
  2. Assisted E-Services: This segment focuses on providing digital services through their network of BLS Touchpoints and BLS Stores. These services include point-of-sale (PoS) transactions, ticketing, and assisted e-commerce, among others. Revenue is primarily derived from registration fees, transaction-based commissions, and service charges.
  3. E-Governance Services: Here, this company assists in delivering various government services to citizens. This includes everything from issuing birth and death certificates to registrations for PAN, Aadhaar, and property. These services are provided through BLS Touchpoints, and the revenue model is based on transaction fees and fixed government charges.

Their network, which includes 98,034 BLS Touchpoints and 1,016 BLS Stores as of September 30, 2023, forms the backbone of your operations. These touchpoints and stores serve as physical interfaces with consumers, offering both digital and physical products and services. The physical presence of BLS Stores allows consumers to experience products firsthand before ordering them, especially in regions with limited internet access.

The business model is described as “phygital,” blending physical and digital strategies to offer localized services, which is essential in areas where face-to-face interaction and trust are crucial. This model makes your services accessible and user-friendly, irrespective of the customer’s location.

Moreover, the company has a history of strategic acquisitions to expand and enhance its service offerings. Examples include acquiring Starfin and ZMPL, which significantly expanded their network of customer service points.

In summary, the company provides a comprehensive and integrated platform of services catering to a wide range of needs in the banking, e-commerce, and e-governance sectors, particularly focusing on areas with lower technological penetration. This approach not only facilitates access to essential services but also promotes financial inclusion and digital literacy across diverse population segments in India.

Objects of the BLS E-Services Limited IPO:

The company proposes to utilise the Net Proceeds towards funding the following objects: i. Strengthening the technology infrastructure to develop new capabilities and consolidating the existing platforms; ii. Funding initiatives for organic growth by setting up of BLS Stores; iii. Achieving inorganic growth through acquisitions; and iv. General Corporate Purposes

BLS E-Services Limited IPO Details:

Open Date: Jan 30 2024
Close Date: Feb 01 2024
Total Shares: 23,030,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 310.91 Cr.
Lot Size: 108 Shares
Issue Price: ₹ 129 - 135 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 06 2024

Promoters And Management:

Rahul Sharma, aged 38 years, is an Executive Director and Chief Financial Officer (CFO) of the Company. He was appointed as the Chief Financial Officer of the Company since December 21, 2022. He holds a bachelors’ of commerce (hons) degree from the University of Delhi. He is a qualified Chartered Accountant. He has been associated with BLS group since the year 2011. He has over 16 years of experience in the field of taxation, finance and accounts. Shikhar Aggarwal, aged 32 years, is a Chairman and Non-Executive Director of the Company. He has been a Director of the Company since May 16, 2023. He holds a bachelors’ degree in arts from the University of Delhi. He has over 6 years of experience in providing technology enabled services to governments and citizens with his association with BLS group of companies since 2016 and is presently, the joint managing director of BLS International Services Limited. He was also listed in the “Times 40under40” list for the year 2021. Diwakar Aggarwal, aged 60 years, is a Non-Executive Director. He has been a Director of the Company since May 16, 2023. He holds a bachelors’ degree in commerce (honours) from the University of Delhi. He has over 30 years of experience in providing technology enabled services to governments and citizens with his association with BLS group of companies since 1991 and is presently, the chairman of BLS International Services Limited.

Financials of BLS E-Services Limited IPO:

A) Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 0.01 0.01 66.72
Reserves 9 15 40
Borrowings 11 9 0
Trade Payables 0 0 0
Other Liabilities 31 32 72
Total Liabilities 40 56 179
Net Block 0.13 0.20 1.07
Capital Work in Progress 0 0 0
Investments 0 0 0
Other Assets 20 28.8 108
Total NC Assets 20 29 109
Receivables 9 8 18
Inventory 0 0 5
Cash & Bank 9 13 45
Other Assets 3 6 2
Face value 10 10 10
B) Profit & Loss
Particular (In Crore) Mar-21 Mar-22 Mar-23 6MFY24
Revenue 64 97 243 156
Raw Material Cost 42 63 161 105
Employee Cost 4 6 23 14
Other Expenses 14 20 25 16
EBITDA 4 8 34 21
EBITDA Margin 6.25% 8.25% 13.99% 13.46%
Other Income 1 2 3 2
Depreciation 0 1 3 1
Interest 1 1 4 0.3
Exceptional Item 0 0 3 0
Profit before tax 4 7 27 21
Tax 1 1 7 6
Net profit 3 5 20 15
NPM% 4.62% 5.05% 8.13% 9.49%
C) Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 4 7 27
Receivable 0 0 6
Inventory 0 0 0
Payable 0 6 -17
Other WC Items 4 7 -4
Working Capital Changes 4 14 -3
Direct Taxes -1 -2 -4
Net Cash Inflow from Operating Activity 8 20 29
Cash from Investing Activity
Fixed assets purchased 0 -0.2 -1
Fixed assets sold 0 0 0
Investments purchased 0 0 0
Other investing items 0 -13 -65
Net cash inflow from investing activities -0.57 -13 -66
Cash from Financing Activity
Proceeds from shares 0 0 73
Proceeds from borrowings 0 -7 0
Repayment of borrowings 0 -9 -20
Intrest paid fin 0 -5 -4
Other financing items 0 0 -2
Net Cash Flow from Financing activities -5 -7 46

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP MCap (In Crore)
BLS EServices Limited 243 20 2.20 61.4 135 1,226
EMudhra Limited 249 61 7.90 58.0 456 3,771

Lead Manager of BLS E-Services Limited IPO:

  1. Unistone Capital Pvt Ltd

Registrar of BLS E-Services Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

BLS E-Services Limited G-4B-1, Extension, Mohan Co-operative Indl. Estate Mathura Road, South Delhi, New Delhi – 110044, India Phone: +91-11- 45795002 Email: Website

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