Stellar Start: BLS E-Services lists at 129% premium at Rs 309 per share on the BSE

BLS-E Services Limited is a digital service provider that offers Business Correspondence services to major banks in India, Assisted E-Services, and e-government services at the grassroots level in India, debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 309 per share, reflecting an impressive 129% premium compared to the final issue price of Rs 135 per share. The company’s market capitalisation stands at Rs 2807 crore on the BSE. Meanwhile, on the NSE, the stock debuted at Rs 305 per share, representing an impressive premium of 126% compared to its final issue price.

IPO Proceeds

The company intends to employ the Net Proceeds for the following purposes:

• Enhancing the technology infrastructure to foster new capabilities and consolidating existing platforms.
• Allocating funds for initiatives related to organic growth, including establishing BLS Stores.
• Pursuing inorganic growth through acquisitions.
• Meeting general corporate objectives.

Company profile

BLS-E Services Limited is a digital service provider that offers Business Correspondence services to major banks in India, Assisted E-Services, and e-government services at the grassroots level in India.

The company’s service offerings can be categorized into three parts: (i) Business Correspondents Services; (ii) Assisted E-Services; and (iii) E-Governance Services.

As a subsidiary of BLS International Services Limited, the company provides visa, passport, consular, and other citizen services to state and provincial governments across Asia, Africa, Europe, South America, North America, and the Middle East through its technology-enabled platform. It is the only listed company engaged in this domain in India.

Subscription details:

On February 01, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 162.38 times. The public issue received remarkable interest, with the retail category being subscribed 236.53 times, while the QIB and NII categories reached a subscription rate of 123.30 and 300.05 times respectively.

The IPO price band was between Rs 129 and Rs 135, with a face value of Rs 10 per share and a lot size of 108 shares. The total size of the company’s IPO was Rs 310.91 crore, and the final share issue price was fixed at Rs 135 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive 129% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.