BLS E-Services IPO last day to apply: GMP rises, check issue details, review, more. Should you subscribe or not?

BLS E-Services IPO opened for subscription on Tuesday, January 30, and will close on Thursday, February 01. BLS E-Services IPO received overwhelming response from investors on both the days of subscription. BLS E-Services IPO subscription status was 15.67 times on day 1, as per data available on BSE. On the second day the issue was subscribed 42.78 times.

BLS E-Services Limited IPO price band has been fixed in the range of ₹129 to ₹135 per equity share of the face value of ₹10. BLS E-Services IPO lot size is 108 equity shares and in multiples of 108 equity shares thereafter.

Also Read: BLS E-Services IPO continues to see strong demand from retail, NIIs on day 2; GMP rises

BLS E-Services Limited IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. A discount of ₹7 per equity share is being offered to BLS International shareholders reservation portion.

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BLS E-Services IPO details

BLS E-Services IPO solely comprises of fresh issue of 2,30,30,000 crore equity shares by the subsidiary of the listed business BLS International Services. There is no offer-for-sale component to the BLS E-Services IPO.

In consultation with the book running lead manager (BRLM), BLS E-Services IPO conducted a pre-IPO placement through a private placement of 11,00,000 equity shares for cash at a price of ₹125 per equity share, totalling ₹1,375 lakhs. The size of the fresh-issue of equity shares has been reduced to 2,30,30,000 equity shares.

Also Read: BLS E-Services IPO day 2: GMP rises, check review, other key details. Should you subscribe?

The company intends to use the net proceeds to finance the establishment of BLS Stores as a means of promoting organic growth, the acquisition of businesses to achieve inorganic growth, general corporate purposes, and strengthening the technology infrastructure to develop new capabilities and consolidate the current platforms.

The registrar of the BLS E-Services IPO is Kfin Technologies Limited, while the book running lead manager is Unistone Capital Pvt Ltd.

BLS E-Services IPO GMP today

BLS E-Services IPO GMP, or grey market premium, is +174, similar to the previous session. So far, the GMP has been rising. This indicates BLS E-Services share price were trading at a premium of ₹174 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of BLS E-Services share price was indicated at ₹309 apiece, which is 128.89% higher than the IPO price of ₹135.

Also Read: BLS E-Services IPO: 10 key risks investors should consider before investing in BLS IPO

Based on the last ten sessions of grey market activity, today IPO GMP points upward and expects a strong listing, as per analysts at investorgain.com. The lowest GMP is ₹60, while the highest GMP is ₹174.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

BLS E-Services IPO Review

Swastika Investmart Ltd

BLS E Services Limited, a digital service provider, may profit from government measures aimed at promoting digital India, according to the brokerage. With a broad client base and a business plan with several income streams, the company runs on an asset-light business model. Additionally, the company's financials have shown steady development.

"A few concerns are that the company has a limited operating history, making it difficult to evaluate its business and growth; secondly, it is dependent on a single customer for major revenue; and third, it has geographical concentration.

Finally, it is valued at a P/E of 44x, which seems fairly priced, so considering all the factors, we give a Subscribe rating to this," the brokerage said.

Marwadi Financial Services

"Considering the FY-23 / FY24-Annualized EPS of ₹2.24/3.23 on a post-issue basis, the company is going to list at a P/E of 60.33x /41.77x with a market cap of Rs. 12,266 mn, whereas its peers namely EMudhra Limited is trading at a P/E of 57x.

We assign a “Subscribe” rating to this IPO as the company has an asset-light business model with diverse sources of revenue and negligible customer acquisition and retention costs. Also, it is available at a reasonable valuation as compared to its peers," the brokerage said in its report. 

Also Read: BLS E-Services IPO: Check out 10 key things to know from RHP before investing

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.