BLS E-Services rallied 7.53% to Rs 285 after the firm said that it has entered into a definitive share purchase agreement (SPA), to acquire 55% equity shares of Aadifidelis Solutions and its affiliates (ASPL) for an enterprise value of Rs 190 crore.
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, ASPLs network of over 8,600 channel partners source loan enquiries, which will align with BLSEs 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.
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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. ASPLs 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, ASPLs asset-light, low working capital and commission-based model will positively contribute to BLSEs 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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