BLS International gains 9% on acquiring the business correspondent of SBI

It’s an all-cash acquisition amounting to Rs 120 crore.  

BLS International, engaged in travel services like visa, passport, biometric, etc has been trending on Dalal Street as it has rallied by about 9% from its previous close of Rs 177.10. The scrip opened at Rs 178.40 and made a day’s high of Rs 196(+10.7%). At 3:00 pm on 9th June, the stock was trading at Rs 192.90.

The company has announced an acquisition of the largest business correspondent (BC) in the country - Zero Mass Private Ltd (“ZMPL”). According to the company’s press release, ZMPL has been operating the largest BC network for State Bank of India (“SBI”) with around 11,500 active CSPs (15% of all the SBI BCs). The company has a pan-India presence with CSPs located across all States and Union Territories of India. Through this acquisition, BLS International intends to expand and consolidate its BC Business. It will now become the largest business correspondent in India.

BLS International has agreed to acquire 100% equity shares of ZMPL for an equity consideration of Rs 120 crore, including the entire equity stake of 63.94% held by Anurag Gupta (main promoter). Pursuant to the transactions already completed, BLS International now owns an 88.26% equity stake in ZMPL. State Bank of India continues to hold a 6.83% equity stake in ZMPL. 

Talking about its recent quarterly results, in Q4FY22, revenue grew by 75.59% YoY to Rs 253.84 crore from Rs 144.56 crore in Q4FY21. On a sequential basis, the top-line was up by 11.8%. PBIDT (Ex OI) was reported at Rs 35.04 crore, up by 246.87% as compared to the year-ago period and the corresponding margin was reported at 13.8%, expanding by 681 basis points YoY. PAT was reported at Rs 35.2 crore, up by 53.2% YoY.

BLS International Services Ltd is a partner for governments and citizens, having an impeccable reputation for setting benchmarks in the domain of visa, passport, consular, citizen, e-governance, attestation, biometric, e-visa and retail services since 2005.

The stock has a 52-week high of Rs 207 and a 52-week low of Rs 61.03.