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3i-backed BVG India files draft papers to raise funds via IPO
Photo Credit: 123RF.com

BVG India Ltd, the country’s largest pure-play facility management player, has filed a 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 Rs 200 crore and an offer for sale (OFS) of up to 7.20 million shares by shareholders and promoters.

The OFS comprises up to 3.38 million shares by Strategic Investments Alpha, up to 1.7 million 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, and 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, net debt stood at Rs 391.62 crore as against Rs 448.13 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 have 21.89% and 5.01% stake, respectively, in the company.

3i Growth Capital picked up a minority stake in BVG India from 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, BVG India’s total income stood at Rs 1,674.58 crore against Rs 1,940.43 crore a year ago. Net profit for the period was Rs 86.10 crore versus Rs 122.50 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 mechanised housekeeping, industrial housekeeping, manpower supply, security services and janitorial services, hard services such as electro-mechanical works and highway maintenance, and specialised services such as paint-shop cleaning and logistics management. 

It also provides beach development and cleaning services and undertakes the operation and maintenance of buses including electric buses.

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