BLS International shares jump 5% as subsidiary taps IPO route to raise funds

Shares of BLS International Services rose more than 5 per cent during early trading sessions on Tuesday as the company tapped primary markets for listing of its wholly-owned subsidiary. The company informed about the same through a regulatory filing on Monday.

BLS E-Services, a subsidiary of visa and immigration services firm BLS International, has decided to raise funds via an initial public offering (IPO), the company said in an exchange filing. However, the company did not disclose the size, nature and other details about the primary stake sale of its subsidiary.

"The board of directors of BLS E-Services, subsidiary of the company at their meeting held on Monday, June 26, 2023 approved fund raising, subject to receipt of requisite approvals, market conditions and other considerations, by way of an initial public offering of its equity shares," the exchange filing said.

Following the announcement of the IPO of the subsidiary, shares of BLS International Services gained more than 5 per cent to Rs 203.45 on Tuesday. The scrip had settled at Rs 193.65 on Monday. The company was commanding a total market capitalization of more than Rs 8,100 crore.

Shares of BLS International have gained more than 145 per cent from its 52-week low at Rs 83.38. The stock has rallied more than 400 per cent in the last five years, while the stock has surged a whopping 2,700 per cent from its adjusted covid-19 lows at Rs 7.25.

BLS International also clarified that following the IPO, BLS E-Services would continue to be a subsidiary of the company. The size of the offer, price and other details of the proposed IPO will be determined in due course, it noted.

BLS International reported a more than two-fold jump in its consolidated net profit at Rs 76.73 crore for the quarter ended March 31, 2023, compared to a net profit at Rs 35.20 crore in the year ago. The company's operational revenue rose 77 per cent to Rs 448.63 crore in the March 2023 quarter from Rs 253.84 crore in the year-ago period. 

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