BLS E-Services Limited to acquire 55% stake in Aadifidelis Solutions Private Limited

The Board of Directors of BLS E-Services Limited at their meeting held today i.e Monday, June, 17, 2024, has, considered and approved to enter into a definitive share purchase agreement w.r.t. to invest and acquire 55% equity shares of Aadifidelis Solutions Private Limited and it's Affiliates (ASPL) by the Company and consequent to the said acquisition of shares in share capital of ASPL, it will become Subsidiary of the Company.

ASPL is engaged in distribution and processing of secured and unsecured loans for corporates and individuals. ASPL is rendering services like loan against property, personal loans, credit card, home loans, business loans and working capital financing, etc. ASPL has become one of the largest companies in distribution and processing of loans and has PanIndia presence in 17 states and union territories and operates through a network of over 8,600 channel partners in addition to owned branches. ASPL and its affiliates are empanelled with majority of leading financial institutions including ICICI Bank, HDFC Bank, IDFC First Bank, Axis bank, Kotak Mahindra Bank, IndusInd Bank, Bandhan Bank, Aditya Birla Finance, Bajaj Finance, TATA Capital, Poonawala Fincorp, InCred, HeroFinCorp, etc.

The Company would acquire and invest in share capital of ASPL, for an upfront investment (Primary and Secondary) of approx. Rs. 71 Crore and additional payment on achievement of certain milestones in FY 2024-25.

As per the unaudited financials for FY2024, ASPL and its affiliates achieved revenue of ~Rs. 577crores and the EBITDA stood at ~ Rs. 22 crores.

Lagrange Point Advisors LLP, a Mumbai-based M&A advisory firm, acted as the sole transactionadvisor to BLSE for this transaction. Dua Associates acted as legal advisors for the transaction.

"Commenting on this milestone, Mr. Shikhar Aggarwal, Chairman of BLS E-Services Ltd. said: "We are delighted to announce the signing of a definitive agreement with ASPL, a strategic movethatwill unveil a plethora of cross-selling opportunities while integrating specialized loan processinganddistribution services into our portfolio, reinforcing the prominent position we hold in deliveringlast-mile banking services.

With over 6 lakh individuals frequenting our 1,00,000+ touchpoints daily, we are well-positionedtofurnish ASPL with ample references for individuals seeking secured & unsecured loans at thegrassroots levels in India corresponding to the location of our touchpoints. ASPL's esteemedrelationships and empanelment with the majority of the financial institutions will further fortifyournetwork of 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 andwould augment our business, extend our reach and further expand our market share."

Shares of BLS International Services Limited was last trading in BSE at Rs. 348.45 as compared to the previous close of Rs. 350.30. The total number of shares traded during the day was 49129 in over 1587 trades.

The stock hit an intraday high of Rs. 352.30 and intraday low of 344.20. The net turnover during the day was Rs. 17050690.00.

Source : Equity Bulls

Keywords

BLSInternationalServices INE153T01027 BLSEServices Acquisition AadifidelisSolutions