The IPO was also well received by investors with a subscription of over 100 times at close, owing to its strategic pricing.
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.
Analysts said investors who got the allotment can book partial while holding the rest for the medium term.
“The listing was above expectations and investors can book 50% profits and free up their capital. Meanwhile, new investors need not be in a hurry to buy at current levels and should wait for sometime before the price settles down,” said Avinash Gorakshakar of Profitmart Securities.
Net proceeds from the fresh issue will be used for strengthening its technology infrastructure to develop new capabilities and consolidating its existing platforms, funding initiatives for organic growth by setting up BLS stores and achieving inorganic growth through acquisitions and general corporate purposes.Also Read: Jana Small Finance Bank’s IPO opens on Wednesday: All you need to know about the Rs 570-crore public offerBLS E-Services is a technology-enabled digital service provider, offering business correspondent services to major banks in India, assisted e-services, and e-governance services at grassroots levels.
Through its robust network, the company provides access points for the delivery of essential public utility services, social welfare schemes, healthcare, financial, educational, agricultural, and banking services for governments and businesses alike in addition to a host of B2C services.
“Allottees who applied for the public offering are advised to maintain their stop loss at Rs 300 and wait for further upside, whereas those who have a medium- to long-term perspective can also hold the stock,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
In FY23, the company’s income increased 151% year-on-year (YoY) to Rs 246 crore, while profit jumped 278% to Rs 20.33 crore. For the six months ended September 2023, total income stood at Rs 158 crore and profit was at Rs 14.68 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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