BLS E-Services Ltd Share Price – NSE  /  BSE

IT - Software, Small Cap

The company will make an upfront investment of approximately Rs 71 crore (primary and secondary) with balance consideration being deferred linked to achievement of milestones in FY25, said the firm.

The acquisition will be an all-cash deal and the transaction will be completed in the second quarter of FY25.

Operating through a hub-and-spoke model, with a comprehensive Pan-India presence in 17 states and union territories, ASPL’s network of over 8,600 channel partners source loan enquiries, which will align with BLSE’s portfolio of Business Correspondents-led citizen-centric last mile banking services, the company stated in the press release.

Currently, ASPL facilitates an average monthly loan disbursement of more than Rs 1,500 crore through its extensive network of channel partners and is empanelled with the majority of leading financial institutions, like ICICI Bank, HDFC Bank, Axis Bank, Bajaj Finance, and TATA Capital, to name a few. As per the unaudited financials for FY2024, ASPL and its affiliates achieved revenue of Rs 577 crore and the EBITDA was at Rs 22 crore.

Shikhar Aggarwal, chairman of BLS E-Services, said, “The signing of a definitive agreement with ASPL, a strategic move that will unveil a plethora of cross-selling opportunities while integrating specialized loan processing and distribution services into our portfolio, reinforcing the prominent position we hold in delivering last-mile banking services.

With over 6 lakh individuals frequenting our 1,00,000+ touchpoints daily, we are well-positioned to furnish ASPL with ample references for individuals seeking secured & unsecured loans at the grass roots levels in India corresponding to the location of our touchpoints. ASPL’s esteemed relationships and empanelment with the majority of the financial institutions will further fortify our network of over 21,000 business correspondent centres.

Further, beyond the operational synergies, ASPL’s asset-light, low working capital and commission-based model will positively contribute to BLSE’s profitability, propelling us toward a newlevel of financial success. The acquisition is a testament to our strategic initiatives towards diversifying our operations and would augment our business, extend our reach and further expand our market share.”

BLS E-Services is a digital service provider. The Delhi-based company offers services such as business correspondence services to major banks, assisted e-services and e-governance services at grassroots levels. It also provides the delivery of essential public utility services, healthcare, financial, agricultural, educational, and banking services for governments in urban, semi-urban, rural and remote areas.

BLS E-Services reported consolidated net profit declined 58.5% to Rs 10.31 crore in Q4 FY24 as aginst with Rs 24.87 crore posted in Q4 FY23. Net sales stood at Rs 73.65 crore in the fourth quarter of FY24, registering a growth of 1.3% YoY.

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Net profit of BLS E-Services declined 58.54% to Rs 10.31 crore in the quarter ended March 2024 as against Rs 24.87 crore during the previous quarter ended March 2023. Sales rose 1.29% to Rs 73.65 crore in the quarter ended March 2024 as against Rs 72.71 crore during the previous quarter ended March 2023.

For the full year,net profit rose 66.31% to Rs 31.40 crore in the year ended March 2024 as against Rs 18.88 crore during the previous year ended March 2023. Sales rose 24.04% to Rs 301.48 crore in the year ended March 2024 as against Rs 243.06 crore during the previous year ended March 2023.

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BLS E-Services will hold a meeting of the Board of Directors of the Company on 13 May 2024

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Net profit of BLS E-Services reported to Rs 7.46 crore in the quarter ended December 2023 as against net loss of Rs 12.54 crore during the previous quarter ended December 2022. Sales rose 3.74% to Rs 71.65 crore in the quarter ended December 2023 as against Rs 69.07 crore during the previous quarter ended December 2022.

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