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

Upcoming IPO: Ahead of the filing of the Red Herring Prospectus (RHP), BLS E-Services – a subsidiary of BLS International Services – mobilized ₹13.75 crore. As per the company's note to investors, a total of 17 companies purchased 11 lakh shares of the company in the pre-IPO phase. According to the BLS E-Services release, the prominent names 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 January 4, 2024.

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Talking about the pre-IPO placement fundraising, BLS E-Services said in a note to investors: “…in consultation with the book-running lead managers, has made a further issue of equity shares through a private placement of Rs 11 lakh equity shares carried out ₹125 per share, added together ₹13.75 crore (pre-IPO placement).”

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BLS E-Services added this after the increase ₹13.75 crore by issuing 11 lakh shares through a pre-IPO offering, the public issue size as mentioned in the draft Red Herring Prospectus (DRHP) is expected to decline. The new issue volume of the planned IPO is now 2,30,30,000 new shares. In preliminary documents filed by the company with SEBI, the company had proposed to issue fresh 2,41,30,000 equity shares.

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Expected size of the upcoming IPO

Take an example from ₹13.75 crore fundraising by issuing 11 lakh shares of the company in the pre-IPO phase, the price of one share of the company is ₹125 each (13,75,00,000 / 11,00,000). So, investors planning to invest in this upcoming IPO should continue to rest assured that the size of BLS E-Services' IPO will be around the same size ₹301 crore (2,41,30,000 x 125) of which the company has already collected ₹13.75 crore by issuing 11 lakh shares to 17 investors.

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The capital markets regulator Securities and Exchange Board of India (SEBI) has already approved the IPO of BLS E-Services in December 2023.

BLS E-Services is active in the banking correspondence and e-governance business. The public offering is expected to raise significant capital proceeds from parent company BLS International Services for the company's future expansion and growth. This step is also a sign of the company's proactive management.

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