BVG India Ltd. has submitted its DRHP to SEBI with an estimated valuation of Rs. 1,200–1,300 crore. The first public offering includes an offer to sell up to 71,96,214 equity shares and a new issue of an extra 200 crore rupees. Hanmatrao Ramdas Gaikwad is offering 16,98,458 stock shares, whereas Umesh Gautam Mane is offering 300,523 equity shares.
Strategic Investment FM Alpha Ltd. sells 33,83,589 equity shares, and Strategic Investment FM B sells 7,74,194 equity shares. The offering’s book-running lead managers are ICICI Securities Ltd, JM Financial Ltd, and HSBC Securities and Capital Markets Pvt Ltd. The company also plans to move forward with a pre-IPO sale of Rs. 40 crore. The largest integrated services company in India is supported by 3i Group, a private equity business based in the UK. The company provides both hard services—such as electro-
mechanical work, highway maintenance and soft services such as pharmacy cleaning and logistics management. Automated housecleaning, staff sourcing, janitorial services, etc. are examples of soft services. The company also provides services including garbage disposal, emergency police, and medical response, in addition to all of the aforementioned. The company will have provided customer service to its top 10 clients for a total of 5 years by June 30th, 2021. By June 30, 2021, they will have more than 54,000 employees.
They have served more than 490 clients in 100 cities, 20 states, and 5 union territories. The business benefited from aggressive marketing initiatives and recommendations. Thanks to strong marketing campaigns and suggestions, the company has been successful in increasing its customer base by 58 percent during the course of the past three fiscal years. With a market share of 6.4%, the company dominated the market for integrated facilities management services in FY21. They have provided nine services to a big Indian automaker since the company’s inception.
BVG India Limited IPO Objectives
Here are a few quick reasons why the company is going public:
- Repayment and/or prepayment of certain borrowings of the company
- General corporate purposes.
BVG India Limited IPO Financials
| Particulars (In Rs cr) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operations | 1,674.6 | 1,940.43 | 1,829.84 |
| PAT | 86.11 | 122.50 | 84.51 |
| EBITDA | 231.74 | – | 181.1 |
| EPS (In Rs) | 32.31 | 45.98 | 31.72 |
| Total Assets | 1,912.75 | 1,898.75 | 1,741.82 |
| Total Borrowing | 547.3 | 621.51 | 583.63 |
| Equity Share Capital | 25.71 | 25.71 | 25.71 |
Why should you invest in the BVG India Limited IPO?
- The Indian FM market has grown at the rate of 19.6% between Fiscal 12 and Fiscal 2021. The FM market is estimated at ₹260.0 billion in Fiscal 2021.
- The FM market in India is estimated to grow with a CAGR of 27.0% between Fiscal 2021 and Fiscal 2023. The majority of the growth is expected to be driven by the consistent growth in demand from the commercial, retail and industrial sectors.
Know before investing
Strengths
- With a 6.4 per cent market share in the integrated FMS market in FY21, BVG India is the largest integrated service provider in the nation. It has also outperformed all of its rivals in terms of revenue.
- They have solid ties with a wide variety of their clientele. 192 of the 475 clients served in FY21 were from the industrial and consumer sector, 31 from the transportation, transit, and infrastructure sector, more than 50 from the hospital and healthcare sector, and 155 from a variety of other industries.
- Integrating a wide range of services into a single contract is BVG India’s biggest strength.
- They provide constant, standardised service standards and strive to offer high-quality services.
Risks
- The firm is affected by any rise in pay or training expenses since the company is subject to all labour laws and regulations.
- Potential operational risk may negatively impact the company’s reputation.
- Since the corporation does not own the BVG brand, they have no control over its use and risk having its reputation damaged.
- A small number of clients provide a significant portion of the company’s income, therefore losing them would result in a substantial loss of that revenue.
BVG India Limited Peer Comparison
| Company | Total Income in (In Rs Cr | Market Share | EBITDA Margin FY20 |
|---|---|---|---|
| BVG India Ltd | 167.5 | 6.40% | 13.02% |
| ISS Facility Services India Pvt Ltd | 101.0 | 3.90% | 3.60% |
| Updater Services Pvt Ltd | 112.0 | 4.30% | 4.32% |
| Sodexo Facilities Management Services | 91.0 | 3.50% | 3.31% |
| Dusters Total Solutions Services Pvt Ltd | 72.0 | 2.80% | 5.90% |
| JLL India Ltd | 74.5 | 2.90% | 8.60% |
| CBRE South Asia Pvt Ltd | 58 | 2.20% | 6.20% |
| OCS Group Pvt Ltd | 47 | 1.80% | 4.10% |
BVG India Ltd IPO FAQs:
Q1. What is BVG India Limited’s Initial Public Offering?
Ans. In the range of Rs. 1,200–1,300 crore, BVG India Ltd. has filed its DRHP with SEBI. The first public offering comprises an additional 200 crore rupee new issuance and an offer to sell up to 71,96,214 equity shares.
Q2. When will allotments for the BVG India Limited IPO become available?
Ans. BVG India Limited IPO will finalize the allotment by <>.
Q3. What will the IPO lot size for BVG India Limited be?
Ans. Each BVG India Limited IPO lot has <> shares.
Q4. When will BVG India Limited IPO be available to buy?
Ans. The IPO of BVG India Limited will be open for subscription from <>.
Q5. What is BVG India Limited’s smallest lot size available to retail investors?
Ans. The minimum market lot size for the BVG India Limited IPO is <> shares.
Q6. Which exchanges will BVG India Limited list on?
Ans. BVG India Limited shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Q7. What is the IPO size of BVG India Limited?
Ans. The IPO size of BVG India Limited is Rs 50 crore.
Q8. How will I get my BVG India Limited stock?
Ans. Following allotment, the BVG India Limited shares will be credited to the Demat account.
Q9. Can I use one PAN to submit multiple applications for the public issue of BVG India Limited?
Ans. No, you cannot use the same PAN to make multiple applications for this BVG India Limited IPO or any other public offering.
Q10. Is it necessary to give immediate approval to a UPI mandate request?
Ans. Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.
Q11. Who owns BVG India Limited?
Ans. Mr Hanmantrao Gaikwad is the owner of BVG India Limited.
