BLS E-Services Raises Rs 13.75 Crore in Pre-IPO Placement, Adjusts Fresh Issue Size

BLS E-Services, a subsidiary of BLS International Services, has successfully raised Rs 13.75 crore through a pre-IPO placement, marking a significant milestone in its journey towards an initial public offering (IPO). The company made this announcement ahead of filing its red herring prospectus with the Registrar of Companies (ROC).

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A total of 17 investors participated in this pre-IPO placement, collectively acquiring 11 lakh equity shares of BLS E-Services. Notable investors included Satnam Singh Takkar, Sandeep Srivastava, Vijay Kumar Agarwal, Rajya Vardhan Sonthalia, Shaurya Vardhan Sonthalia, and Tarun Chandmal Jain.

In an official statement to investors, BLS E-Services stated, “The company, in consultation with book running lead managers, has undertaken a further issue of equity shares via private placement of 11 lakh equity shares for cash at a price of Rs 125 per share, aggregating to Rs 13.75 crore (pre-IPO placement).” The date of allotment for these 11 lakh shares was January 4.

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As a result of this successful pre-IPO placement, the size of the fresh issue, as outlined in the Draft Red Herring Prospectus (DRHP), has been reduced by 11 lakh equity shares. The revised fresh issue size now stands at up to 2,30,30,000 equity shares, according to BLS E-Services.

BLS E-Services had initially filed preliminary papers for fund raising through an initial public offering in August 2023. The IPO primarily comprises a fresh issue of 2.41 crore equity shares by the company. Assuming an issue price of Rs 125 per share, which was the price for the pre-IPO placement, the IPO size could potentially amount to Rs 301.62 crore.

The Securities and Exchange Board of India (SEBI) granted approval for BLS E-Services’ IPO plans on December 12, 2023, giving the company the green light to proceed.

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BLS E-Services, which provides business correspondent services to major banks in India and offers E-services and E-governance solutions at the grassroots level, plans to allocate the proceeds strategically. It will allocate Rs 97.6 crore towards strengthening its technology infrastructure, developing new capabilities, and consolidating existing platforms. Additionally, Rs 74.78 crore will be dedicated to organic growth through the establishment of BLS Stores, while Rs 28.71 crore will be allocated for inorganic growth via potential acquisitions. The remaining net issue proceeds will be earmarked for general corporate purposes.

Unistone Capital has been appointed as the merchant banker for the IPO issue, further solidifying BLS E-Services’ commitment to a successful IPO.

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BLS E Services IPO

This pre-IPO placement success is a positive sign for BLS E-Services as it continues its journey towards becoming a publicly traded entity and further expanding its digital service offerings in India.

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