01 Oct , 2021 By : Kanchan Joshi
BVG India Ltd, the country’s largest pure-play facility management player, has filed the draft red herring prospectus with the Securities and Exchange Board of India to raise funds via an initial public offering.
The IPO of the Bharat Vikas Group company, which is backed by UK private equity major 3i Group, consists of a fresh issue of Rs200 crore and an offer for sale of up to 7.20 million shares by its existing shareholders and promoters.
The OFS comprises up to 3.38 million shares by Strategic Investments Alpha, up to 1.7 mln shares by Hanmantrao Ramdas Gaikwad, 7.74 lakh shares by Strategic Investments B, up to 5 lakh shares by Vaishali Hanmantrao Gaikwad, up to 3 lakh shares by Umesh Gautam Mane, up to 2 lakh shares by Mohini Umesh Mane.
The proceeds from the issue will be used to repay debt of the company. As of March 2021, its net debt stood at Rs391.62 crore against Rs448.13 crore a year ago.
Currently, Hanmantrao Ramdas Gaikwad holds 52.64% stake in the firm, Umesh Gautam Mane has 7.32%, Vaishali Hanmantrao Gaikwad 2.88%. 3i Growth Capital investment arm Strategic Investments Alpha and Strategic Investments B has 21.89% and 5.01%, respectively, stake in the company.
3i Growth Capital picked up a minority stake in BVG India from earlier investors Kotak Private Equity Group in March 2011.
ICICI Securities, JM Financial, HSBC Securities and Capital Markets India are the book running lead managers to the issue.
For fiscal year 2021, its total income stood at Rs1674.58 crore against Rs1940.43 crore a year ago. Net profit for the period was at Rs86.10 crore versus Rs122.50 crore last year.
Pune-based BVG India is one of India’s largest integrated services companies, having 6.4% market share with more than 54,000 employees as of June 2021. For fiscal year 2021 and June 2021 quarter it served over 582 and 490 clients respectively, in more than 100 cities across 20 states and five union territories in India.
The company offers a wide range of integrated services including soft services such as mechanized housekeeping, industrial housekeeping, manpower supply, security services and janitorial services, hard services such as electro-mechanical works and highway maintenance, and specialized services such as paint-shop cleaning and logistics management.
It also provides beach development and cleaning services and also undertakes the operation and maintenance of buses including electric buses.
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