BLS E-Services
Book Building issueMainboard₹309 Cr issue
+128.89%
Listing gain over issue price
Issue size
₹309 Cr
1 lot at cut-off
₹14,580
Lot size
108shares
Open
30 Jan 2024
Close
01 Feb 2024
Allotment
02 Feb 2024
Listing
06 Feb 2024
Listing performance
Issue price
₹135
Listed at
₹309
Listing-day close
₹370.75
Latest price
—
Listing gain
+128.89%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Jan 2024 – 01 Feb 2024
- Listing date
- 06 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹135 per share
- Lot size
- 108 shares
- Issue type
- Book Building issue
- Total issue size
- ₹309 Cr
- Market cap at offer price
- ₹1,227 Cr
- Promoter holding
- 92.28% → 68.89% pre-issue → post-issue
- ISIN
- INE0NLT01010
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- G-4B-1, Extension, Mohan Co-operative, Indl.Estate Mathura Road, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 93,27,096 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 108 shares per lot, in multiples, at ₹135
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 108 | ₹14,580 |
| Retail (max) | 13 | 1,404 | ₹1,89,540 |
| S-HNI (min) | 14 | 1,512 | ₹2,04,120 |
| S-HNI (max) | 68 | 7,344 | ₹9,91,440 |
| B-HNI (min) | 69 | 7,452 | ₹10,06,020 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
93,27,096
Anchor portion
₹126 Cr
at ₹135 per share
Valuation and performance
Valuation at offer price
₹135 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.05 | 2.24 |
| P/E (×) | 44.26 | 60.27 |
| Price to book (×) | 7.20 | — |
| Market cap | — | ₹1,227 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.46%
- ROCE
- 30.62%
- Debt / equity
- 0.05
- PAT margin
- 8.36%
- NAV per share
- ₹18.76
- Price to book
- 7.20
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About BLS E-Services
BLS E-Services Limited, incorporated in 2016 as a special purpose vehicle, provides technology-enabled digital services across three main segments: Business Correspondents (banking products via CSPs), Assisted E-services (digital retail services), and E-Governance Services (government citizen-centric services). The company operates through subsidiaries including Zero Mass Private Limited (~60.67% of revenue), BLS Kendras Private Limited (~21.39% of revenue), and Starfin India Private Limited (~7.80% of revenue). It generates revenue primarily through fees and commissions on a per-transaction basis across these segments. The company has approximately 19,362 active CSPs through its subsidiaries and over 21,000 touch points across Punjab, Uttar Pradesh, and West Bengal, serving as merchants for product and service distribution.
Company Analysis
from RHPBLS E-Services Limited is a technology-enabled digital service provider offering Business Correspondents, Assisted E-services, and E-Governance Services at grassroot levels in India.
BLS E-Services Limited, incorporated in 2016 as a special purpose vehicle, provides technology-enabled digital services across three main segments: Business Correspondents (banking products via CSPs), Assisted E-services (digital retail services), and E-Governance Services (government citizen-centric services). The company operates through subsidiaries including Zero Mass Private Limited (~60.67% of revenue), BLS Kendras Private Limited (~21.39% of revenue), and Starfin India Private Limited (~7.80% of revenue). It generates revenue primarily through fees and commissions on a per-transaction basis across these segments. The company has approximately 19,362 active CSPs through its subsidiaries and over 21,000 touch points across Punjab, Uttar Pradesh, and West Bengal, serving as merchants for product and service distribution.
digital financial servicesbusiness correspondentse-governancefintechfinancial inclusion
Objects of the Issue
- Strengthening our technology infrastructure to develop new capabilities and consolidating our existing platforms ₹9,758.71 lakhs p.28
- Funding initiatives for organic growth by setting up of BLS Stores ₹7,478.30 lakhs p.28
- Achieving inorganic growth through acquisitions ₹2,871.00 lakhs p.28
- General Corporate Purpose [●] p.28
- Strengthening technology infrastructure to develop new capabilities and consolidating existing platforms p.70
- Funding initiatives for organic growth by setting up of BLS Stores p.70
- Achieving inorganic growth through acquisitions p.70
- General corporate purposes p.70
- Strengthening our technology infrastructure to develop new capabilities and consolidating our existing platforms ₹9,758.71 lakhs p.112
- Funding initiatives for organic growth by setting up of BLS Stores ₹7,478.30 lakhs p.112
- Achieving inorganic growth through acquisitions ₹2,871.00 lakhs p.112
- General Corporate Purposes [●] p.112
- Funding initiatives for organic growth by setting up of BLS Stores p.233
- Technology upgradation and platform integration p.233
Issue Structure
- Total Issue
- Up to 2,30,30,000 Equity Shares of face value of ₹10 each aggregating up to ₹[●] lakhs
- Fresh Issue
- Up to 2,30,30,000 Equity Shares of ₹10 each (after Pre-IPO Placement of 11,00,000 shares at ₹125 per share)
- Offer for Sale
- Not applicable
- Price Band
- [●] per Equity Share (Floor Price) to [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 each
Business Model
Fee and commission-based revenue model: The company earns revenue from per-transaction fees and commissions from Business Correspondents services (66.05% of revenue as of Sept 30, 2023), E-Governance services (28.34%), and Assisted E-services (5.61%). BC business includes banking services like savings accounts, deposits, AePS cash services. E-Governance services are delivered through master service agreements with state governments via the corporate promoter. The company relies on a network of merchants and CSPs who act as distribution channels for these services.
Business Segments
Provides banking products and services on behalf of major banks in India through a network of merchants/CSPs, including opening of savings accounts, fixed deposits, recurring deposits, AePS enabled cash services, domestic money transfer, demat account opening, bill payments, recharges.
Facilitates delivery of various e-governance initiatives of State Governments in India by providing information communication technology enabled citizen centric services in Punjab, Uttar Pradesh and West Bengal. All contracts are awarded to the Corporate Promoter BLS International Services Limited and executed by the Company through master service agreement.
Provides assisted e-services through retailers and digital stores for services such as PAN card applications, bus and air ticketing services, railway ticketing services, banking services.
Provides banking related services including small savings accounts and payments/remittance products to the unserved and underserved population through merchant networks, enabling high-volume low-value transactions in deposits and payments/remittance products in a secured and technology-driven environment.
Delivers IT-enabled E-Governance solutions providing citizen-centric services to central and state governments, including birth and death certificates, property registration, and Aadhaar-related services.
Provides subscription-based portal usage fees and branding fees for assisted e-services business.
Provides Government-to-Citizen (G2C) services including online verifications of various certificates by multiple departments
Offers banking services through BLS Touchpoints including AePS (Aadhaar Enabled Payment System) enabled cash services, insurance, and other banking products
Provides assisted e-commerce services, ticketing services, and other digital services to customers through BLS Touchpoints and BLS Stores
Provides banking products and services on behalf of banks including opening savings and recurring deposit accounts, cash deposits, withdrawals, remittance, transfer, and bill collection services through subsidiaries ZMPL and Starfin
Facilitates delivery of various e-governance initiatives of State Governments providing ICT-enabled citizen-centric services including birth and death certificates, PAN and Aadhaar registrations, property registrations, and other government services through BLS Touchpoints
Provides a variety of assisted services through retailers and digital stores (BLS Touchpoints and BLS Stores) including PoS services, ticketing services, assisted e-commerce services, and other digital transactions
Acts as teller for banks, performing full range of transactions including opening basic savings accounts, aadhar seeding, cash deposits and withdrawals, facilitating remittances, AePS transactions, micro-insurance, bill payments, and loan deposits. Operates over 19,362 active BCs across 35 states/UTs covering 30,552 villages serving over 6,00,000 basic savings bank accounts.
Provides infrastructure, people, technology, systems and service integration to deliver government services to citizens through BLS Touchpoints and Sewa Kendras. Services range from birth/death certificates to property registration. Operates 21,000+ touchpoints across 3 states (Punjab, Uttar Pradesh, West Bengal) with 653 services offered across 16,480 gram panchayats.
Provides assisted e-commerce services and digital platform through BLS Stores and BLS Sewa application. Merchants assist consumers in browsing, ordering items online, and facilitating delivery of goods. Offers mobile recharge, travel/entertainment tickets, insurance, e-commerce purchases, mock tests, and doctor consultations.
Provides e-governance project services to state governments and delivers banking correspondent services for multiple banks including State Bank of India, Utkal Grameen Bank, and Karur Vysya Bank.
Providing banking products and services on behalf of banks including opening savings, recurring deposit accounts, cash deposits, withdrawals, remittance, transfer, bill collection services through subsidiaries ZMPL and Starfin
Providing assisted e-commerce services including PoS services, ticketing services, assisted e-commerce services through BLS Touchpoints and digital stores
Facilitating delivery of various e-governance initiatives of State Governments including birth and death certificates, PAN and Aadhar registrations, property registrations, and other citizen-centric services through BLS Touchpoints
SWOT Analysis
Strengths
- • Fee and commission-based revenue model from diversified service segments(p.45)
- • Established merchant and CSP network for service delivery(p.52)
- • Multi-segment business model generating revenue from BC, E-Governance and Assisted E-Services(p.27)
- • Growth through strategic acquisitions enhancing operational capacity(p.47)
- • Asset light business model with diverse revenue streams(p.131)
- • Extensive nationwide network of BLS Touchpoints enabling reach(p.119)
- • Strong parentage from corporate promoter BLS International Services Limited(p.131)
- • Social and financial inclusion focus addressing underserved markets(p.131)
- • Successful track record of acquisitions for inorganic growth(p.131)
- • First-mover advantage in BC industry; pioneering heritage dating to 2006-07(p.230)
- • Asset-light, merchant-led network expansion model requiring minimal capital expenditure(p.229)
- • Extensive merchant network providing wide geographic reach and local market presence(p.226)
- • Diversified revenue streams across BC, E-Governance and Assisted E-Services reducing dependency on single segment(p.227)
- • Strong parentage and backing from listed parent company BLS International Services Limited(p.229)
- • Largest BC network operator for SBI, India's largest public sector bank(p.223)
- • Strong financial metrics with improving profitability and margins(p.227)
- • Diversified business model with phygital integration across 98,000+ merchant outlets(p.352)
- • Strong financial performance with improving profitability metrics(p.372)
- • Low financial leverage with strong debt reduction(p.353)
- • Successful track record of inorganic growth and acquisition integration(p.354)
- • Improving liquidity position and working capital efficiency(p.353)
- • Strong EBITDA margin expansion(p.352)
Weaknesses
- • High dependency on single customer (59.75% of revenue in H1 FY2024)(p.49)
- • E-Governance contracts not directly awarded; dependence on Corporate Promoter intermediation(p.46)
- • Limited operating history and track record as standalone entity(p.47)
- • Regulatory non-compliance instances requiring compounding applications(p.47)
- • No long-term customer agreements; termination risk with banking partners(p.49)
- • Lack of trademark registration and IP protection(p.50)
- • History of contract termination by Punjab State e-Governance Society(p.50)
- • GST return filing delays subject to regulatory penalties(p.51)
- • Litigation against promoters with material exposure(p.53)
- • Dependence on external agencies for critical infrastructure setup with risk of delays and cost overruns(p.53)
- • Heavy reliance on external IT systems of banks and government agencies(p.54)
- • Exposure to cash-based operational fraud and theft by merchants(p.55)
- • Potential conflicts of interest from promoters' competing business interests(p.55)
- • Past litigation history involving subsidiary and minority shareholders(p.63)
- • Limited experience and lack of relevant IT qualifications among independent directors(p.67)
- • Dependence on rural and semi-urban markets with lower purchasing power(p.147)
- • Geographic concentration of BLS Touchpoints limiting diversification(p.119)
- • Significant capital requirements for technology infrastructure and store upgradation(p.119)
- • Dependence on limited number of major bank clients including SBI for significant revenue(p.223)
- • Lower PAT margins (8.36% in FY23) compared to some industry peers like Emudhra Limited (18.2%)(p.224)
- • Declining Return on Equity from 43.48% (FY22) to 33.33% (FY23), indicating deteriorating capital efficiency(p.227)
- • Vulnerability to merchant quality and performance variability across 98,000+ touchpoints(p.229)
- • Geographic concentration in three states for E-Governance services(p.354)
- • Significant merchant concentration risk and dependence on CSP network(p.354)
- • Material loss of revenue from Punjab Sewa Kendras project expiration(p.382)
- • High employee benefit expenses relative to revenue growth(p.371)
- • Exposure to litigation and fraud from CSPs(p.385)
Opportunities
- • Expansion of BLS Store network for organic growth(p.28)
- • Technology infrastructure strengthening for new capabilities(p.28)
- • Inorganic growth through acquisitions(p.28)
- • Growth in digital payments and financial inclusion market(p.27)
- • New e-governance projects in pipeline with government(p.46)
- • International expansion into new geographies through government partnerships(p.57)
- • Expansion of E-Governance service breadth to include new citizen services(p.59)
- • Growth through organic expansion of BLS Stores and merchant network(p.61)
- • Strong revenue growth trajectory supporting business scaling(p.61)
- • Financial inclusion penetration gap in rural and semi-urban areas(p.155)
- • Rising middle income households creating increased service demand(p.149)
- • E-governance digitization expansion across states(p.153)
- • Rapid growth in digital payments and smartphone penetration(p.161)
- • Government initiatives supporting MSME and microfinance growth(p.163)
- • Growing remittance and payment services demand from migrant workers(p.163)
- • Growing BC market expanding at 19% CAGR from FY22 to FY25, with 98% of rural banking outlets through BCs(p.172)
- • Financial inclusion schemes (PMJDY, PMSBY, PMJJBY, APY) driving demand for BC services among unbanked population(p.230)
- • Rapid digital payments growth with retail digital payments forecast to grow 42-45% CAGR FY23-FY25(p.192)
- • Expanding e-commerce penetration with assisted e-commerce addressing trust and literacy gaps in rural areas(p.216)
- • Rising internet and smartphone penetration in rural India enabling digital service adoption(p.207)
- • Growing domestic remittance market forecast to reach Rs 3.4 trillion by FY25 at 12-13% CAGR(p.177)
- • Government emphasis on digital transactions and e-governance services driving demand for BC services(p.171)
- • Expansion of healthcare-related digital services driven by government initiatives(p.353)
- • Strategic expansion through M&A in complementary business areas(p.354)
- • Scale expansion through merchant and geographic growth(p.354)
- • Cross-selling opportunities through diversified platform(p.352)
- • Financial inclusion and digital empowerment initiatives(p.352)
Threats
- • Regulatory changes by RBI affecting banking partner operations(p.48)
- • Termination or non-renewal of government contracts(p.50)
- • Regional economic slowdown in service delivery states(p.50)
- • Competitive pressure on fees and commissions(p.45)
- • Merchant network disruptions from COVID-19 or similar crises(p.45)
- • Concentration of revenue in E-Governance sector subject to government discretion(p.45)
- • SEBI investigation risk related to Corporate Promoter(p.48)
- • Risk of contract non-renewal with government entities and banks(p.58)
- • Intensifying competition from organized and unorganized market players(p.68)
- • Cybersecurity threats and data breach risks(p.56)
- • Fixed pricing regimes limiting margin expansion on government contracts(p.64)
- • Macroeconomic headwinds and Indian economy slowdown risks(p.76)
- • Regulatory changes in data protection and privacy laws(p.61)
- • Dependence on continuity of merchant relationships(p.60)
- • Regulatory changes affecting BC business model and operations(p.159)
- • Increasing competition from large banks and digital fintechs(p.160)
- • Global economic slowdown impacting domestic growth prospects(p.145)
- • Dependence on government initiatives and policy for financial inclusion(p.147)
- • Volatility in commodity prices and currency fluctuations affecting rural economy(p.145)
- • Intense competition from specialized fintechs and diversified BCNMs with technical capabilities and multiple service offerings(p.174)
- • Regulatory changes and evolving RBI guidelines potentially restricting BC model or imposing new compliance requirements(p.169)
- • Risk of rapid digital payment adoption reducing reliance on physical BC touchpoints and cash transactions(p.191)
- • Merchant churn and operational risk from dependence on 98,000+ independent merchants with varying quality(p.229)
- • Cybersecurity and data privacy risks inherent in digital service delivery at scale across touchpoints(p.196)
- • Low digital literacy and trust deficit in rural areas limiting adoption despite infrastructure improvements(p.191)
- • Regulatory framework changes for privacy and data protection(p.354)
- • Dependence on government contracts and policy continuity(p.354)
- • Risks from operational costs and variable revenue streams(p.353)
- • Competitive environment pressures(p.381)
- • Intellectual property protection vulnerabilities(p.393)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| BLS International Services Limited | Corporate Promoter | 68.20% | [●] |
| Diwakar Aggarwal | Individual Promoter/Director | 12.69% | [●] |
| Shikhar Aggarwal | Individual Promoter/Director/Chairman | 9.37% | [●] |
| BLS International Services Limited | Corporate Promoter | 90.25% | — |
| Diwakar Aggarwal | Individual Promoter | — | — |
| Shikhar Aggarwal | Individual Promoter | — | — |
| BLS International Services Limited | Corporate Promoter | 68.20% | [●] |
| Diwakar Aggarwal | Promoter | 12.69% | [●] |
| Shikhar Aggarwal | Promoter | 9.37% | [●] |
| BLS International Services Limited | Parent Company/Corporate Promoter | — | — |
| BLS International Services Limited | Corporate Promoter | 90.25% | — |
| Diwakar Aggarwal | Promoter | Part of 90.25% | — |
| Shikhar Aggarwal | Promoter | Part of 90.25% | — |
| BLS International Services Limited | Promoter/Holding Company | 69.32% | — |
| Diwakar Aggarwal | Promoter/Director | 12.90% | — |
| Shikhar Aggarwal | Promoter/Director | 9.52% | — |
| Sunabh Consultancy Private Limited | Promoter Group | 6.20% | — |
| BLS International Services Limited | Corporate Promoter | — | — |
Leadership
Shikhar Aggarwal · Chairman
Rahul Sharma · CFO
Sanjay Kumar Rawat · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
BLS E-Services IPO FAQs
What is the lot size of BLS E-Services IPO?
The minimum lot size of BLS E-Services IPO is 108 shares. One lot costs ₹14,580 at the cut-off price.
When does BLS E-Services IPO open and close?
BLS E-Services IPO opened for subscription on 30 Jan 2024 and closed on 01 Feb 2024.
What is the listing date of BLS E-Services IPO?
BLS E-Services IPO listed on 06 Feb 2024.