BLS E-Services, a wholly owned subsidiary of the listed company, BLS International Services Ltd, has announced that it has set a price band of Rs 129-135 per equity share for its Rs 310.90 crore initial public offering (IPO).
The shares are expected to be listed on both equity indices. The sole book-running lead manager is Unistone Capital Pvt Ltd and the IPO registrar is Kfin Technologies Ltd.
About BLS E-Services
BLS E-Services is a technology-enabled digital service provider that provides business correspondence services to several top banks in the country. Its New Delhi-headquartered parent company, BLS International, was founded in 2005 and currently serves 46 client governments across 64 countries.
In August 2018, BLS E-Services had acquired Delhi-based Starfin India Pvt Ltd, a banking business correspondent of the State Bank of India.
When will the issue hit capital markets?
The BLS E-Services issue will open for public subscription on January 30 and close on February 1. Investors can bid for a minimum of 108 equity shares and in multiples of it thereafter, the company said.
The bidding for the anchor investors will open on January 29.
What does the IPO comprise?
The IPO comprises only a fresh issue of up to 2,30,30,000 equity shares. BLS E-Services has raised Rs 13.75 crore in a pre-IPO placement of 11 lakh equity shares at a price of Rs 125 each. Hence, the size of the fresh issue of equity shares has been reduced to 2,30,30,000 equity shares, as per the red herring prospectus (RHP).
At the upper end of the price band, the company will fetch up to Rs 310.90 crore.
The issue includes a reservation of up to 23.03 lakh shares for the shareholders of promoter BLS International Services. The eligible shareholders will get these shares at a discount of Rs 7 per share to the final issue price.
What will the proceeds be used for?
The net proceeds from the IPO will be used to strengthen the company's technology infrastructure to develop new capabilities and consolidate its existing platforms, said BLS E-Services
A part of the funds will be utilised to bring in organic growth by setting up BLS Stores and inorganic growth through acquisitions. A portion will be used for general corporate purposes.
-- with agency inputs