BLS E-Services raises ₹13.75 crore in pre-IPO phase. Revises issue size of upcoming IPO

Upcoming IPO: Ahead of filing the Red herring prospectus (RHP), BLS E-Services — a subsidiary of BLS International Services — has mobilised ₹13.75 crore. As per the company's notice to investors, a total of 17 bought 11 lakh shares of the company in the pre-IPO phase. Prominent names as per the notice issued by the BLS E-Services include Sandeep Srivastava, Satnam Singh Takkar, Vijay Kumar Agarwal, Shaurya Vardhan Sonthalia, Rajya Vardhan Sonthalia, and Tarun Chandmal Jain. BLS E-Services allotted these 11 lakh shares to 17 investors on 4th January 2024.

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BLS E-Services declared about the fundraising in pre-IPO placement via notice to investors saying, ".... in consultation with book running lead managers has undertaken a further issue of equity shares via private placement of 11 lakh equity shares for ₹125 per share, aggregating to ₹13.75 crore (pre-IPO placement)."

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BLS E-Services went on to add that after raising ₹13.75 crore through the issuance of 11 lakh shares in pre-IPO placement, the public issue size as mentioned in the Draft Red herring Prospectus (DRHP) is expected to go down. Now, the fresh issue size of the proposed IPO stands at 2,30,30,000 fresh shares. In preliminary papers filed by the company at SEBI, the company had proposed to issue fresh 2,41,30,000 shares.

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Expected size of upcoming IPO

Taking a cue from ₹13.75 crore fundraising via the issuance of 11 lakh shares of the company in the pre-IPO phase, the price of one share of the company comes at ₹125 apiece (13,75,00,000 / 11,00,000). So, investors planning to invest in this upcoming IPO, should remain content that BLS E-Services IPO size would come to around ₹301 crore (2,41,30,000 x 125) out of which the company has already raised ₹13.75 crore via issuance of 11 lakh shares to 17 investors.

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The capital market regulator, the Securities and Exchange Board of India (SEBI) has already given its nod to the BLS E-Services IPO launch in December 2023.

BLS E-Services is engaged in the banking correspondent and e-governance business. The public issue move of its parent BLS International Services is expected to bring in substantial capital for future expansion and growth of the company. This move also signals the proactive management of the company.