BVG India All Set to Venture into New Fields, Mulls IPO

Pune-based facility management firm and healthcare provider BVG India is gearing up to foray into new business segments. It is looking to tap into the vast potential of India’s facility management segment.

The company also filed its DRHP with market regulator SEBI in September 2021. BVG India aims to float its initial public offering as a part of its expansion plan.

Let’s take a close look into the matter.

How is BVG India Planning its Expansion?

The company is planning to foray into facility management of landscaping and gardening. This will help BVG to tap potential opportunities in the BharatMala Scheme and Atal Mission of Rejuvenation and Urban Transformation.

It has recently secured a big real-estate project in Hyderabad along with the contract to maintain Gujarat’s Statue of Unity.

According to BVG India’s Chairman Hanmant Ramdas Gaikwad, the company is now aiming to focus on particular sectors to further boost its business. He adds that BVG would look for opportunities in consumer sectors such as automobiles, auto ancillary, FMCG, chemicals, electronic and electrical, IT, oil and gas, energy, and power sectors.

BVG is already involved with services of emergency police response in Madhya Pradesh. It now intends to expand the management of vehicle fleets, monitoring and tracking services, and call centre operations in other states.

Other Projects 

BVG India is also looking to foray into the transportation sector. It has been bidding for the NHAI (National Highway Authority of India) project. This project would deal with the introduction of a Traffic Incident Emergency Management system in Rajasthan and UP.

In addition, BVG has bagged the FM contract for Mumbai airport. It has already mobilized more than 3,000 staff for housekeeping, cleaning, and other non-technical operations. It has its services in 15 airports in the country.

BVG India has operations in two railway stations, one bus station, and four metro stations.

About BVG India IPO

BVG India has filed papers for its public offering with SEBI in September 2021. As per its DRHP, this IPO will be a combination of fresh issue of equity shares worth Rs. 200 crores and an OFS of about 71,96,214 shares.

It plans to use the proceeds for debt repayment. The total debt stood at Rs. 391.62 crores as of March 2021 as compared to Rs. 448.13 crores in the year-ago period.

Bottom Line

BVG India comes with a 6.4% market share in the integrated services sector of the country and has more than 54,000 employees. UK-based 3i Growth Capitals has a minority stake in BVG India. The company management believes its public offering will help in its expansion plans.

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Source: The Hindu

Frequently Asked Questions

1. Who are the lead running managers of BVG India IPO?

JM Financial, ICICI Securities, HSBC Securities, and Capital Markets India have been appointed as lead running managers of this IPO.

2. What was the financial scenario of BVG in FY21?

The total income for FY21 was Rs. 1674.58 crores as opposed to Rs. 1,940.43 in the previous year. Net profit for FY21 stood at Rs. 86.10 crores.

3. How much share does 3i Growth Capital have in BVG?

UK-based 3i Growth Capital’s investment firm Strategic Investments Alpha has a 21.89% stake. Strategic Investments B has a stake of 5.01%.

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