Shares of BLS E-Services will make their Dalal Street debut on Tuesday, February 6 and the scrip is likely to deliver multibagger returns upon its listing, if one goes by the signals from the grey market premium for the counter. However, the premium in the unofficial market has seen some correction lately.
A day before its debut, shares of BLS E-Services were commanding a grey market premium (GMP) of Rs 155-160 apiece, signaling a listing pop of 117-120 per cent to the investors over its issue price of Rs 135 apiece. However, the company was commanding a GMP of Rs 175 before its allotment was declared, indicating a bumper listing pop of 130 per cent for the investors.
BLS E-Services IPO received a bumper oversubscription and is expected to have a robust listing for the issue when it lists on the bourses. Given the niche business operation and positive sentiments by the market participant, said Dhruv Mudaraadi, Research Analyst at StoxBox
“It has a robust margin profile and the management intends to improve this further with planned capex investments in technology and setting up more profitable BLS stores. We believe that the growth driver for the company would be setting up citizen service centers for overseas governments,” he added, advissing investors receiving allotment for long-term perspective.
The issue was oversubscribed a whopping 162.40 times, thanks to solid buying interest from all categories of investors. The quota for non-institutional investors was subscribed 300.06 times while the portion reserved for retail investors was subscribed 236.66 times. The allocation for qualified institutional bidders was booked 123.30 times.
BLS E-Services sold its IPO in the price band of Rs 129-135 per share with a lot size of 108 equity shares, between January 31 and February 1. The company raised Rs 310.90 crore through its primary offering, which was entirely a fresh share sale of up to 23,030,000 equity shares.
BLS E-Services IPO is surrounded by excitement as one can expect a strong listing fueled by robust fundamentals, positive investor sentiment, and a flourishing industry, said Shivani Nyati, Head of Wealth at Swastika Investmart. “With its strong fundamentals, positive investor sentiment, and promising outlook, the company is poised for a positive market debut,” she said.
“The company enjoys a long-standing partnership with leading banks, ensuring a stable revenue stream and recurring business. It operates in a high-growth industry driven by increased digitization and financial inclusion initiatives. The IPO is strategically priced, further enhancing its appeal to investors,” she added with a caution to carefully evaluate and manage risk for investment.
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Incorporated in April 2016, BLS-E Services is a digital service provider that offers business correspondence services to major banks in India, assisted E-Services, and E-Governance services at the grassroots level in India. Unistone Capital is the sole book running lead manager of the BLS E-Services IPO, while Kfin Technologies is the registrar for the issue.
