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BVG India Unlisted Shares

Content

BVG India Essentials

Here in this research report, you will get:
- BVG India IPO Review and Analysis
- BVG India IPO Details

- BVG India Upcoming IPO Details
- Expected BVG India Upcoming IPO Date
- Expected Price Band
- Management Details (Ownership)
- Business Model
- Key Ratios
- Peer Comparisons
- Financial reports (Profit and Loss Statements, Balance Sheets, Results, Growth, Valuations, Funding Rounds)

- Latest News (Articles and Videos)
- Upcoming and Past Events Details
- Rating and recommendations for the Company's shares (Whether to Buy/Sell/Hold)

- BVG Share Price (Latest in Pre IPO Market)

Discover and get a complete analysis on BVG India Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on BVG India Upcoming IPO

ISIN

INE257H01013

Face Value

₹10.00

Total Share

2,66,44,808

Total Income

₹1,674.58 Cr

Profit After Tax

₹86.26 Cr

EPS

₹33.16

P/E

39.45

P/B

4.71

Market Capitalisation

₹3,485.14 Cr

Enterprise Value

₹3,914.77 Cr

Book Value

₹277.73

Earnings Yield

2.54 %

Sector

Consumer Discretionary

Sub-sector

Wellness Services

BVG India Growth

Compounded Sales Growth

-13.59%

1 Year
-4.23%

2 Year

Pro Only

Compounded Profit Growth

-29.48%

1 Year
1.05%

2 Year

Pro Only

Return On Equity

11.65%

2021
19.11%

2020

Pro Only

About BVG India

BVG India Limited is the largest integrated services enterprise in India. The company offers facility management services, such as temple maintenance, shopfloor cleaning, road sweeping and cleaning, marble stone flooring restoration, production support, pest control, paintshop maintenance, mechanized cleaning and maintenance, hospital cleaning, glass and façade cleaning, fumigation, catering, carpet upholstery maintenance, attendant, airport maintenance, mechanized housekeeping, and total facility management.
It also provides integrated waste management, scientific landfilling and dumpsite capping, solid waste processing plant, plastic waste management program, legacy waste biomining, mechanized road sweeping, door to door collection of municipal solid waste, waste water pipeline, and sewage treatment plant.
In addition, the company offers emergency medical and police services; railway station and coach cleaning services; and specialized services, including rural electrification, road construction, piping structural fabrication, landscape designing, HVAC installation maintenance, horticulture floriculture, garden development maintenance, fountain and waterfall maintenance, farm management, factory relocation and construction, erection commissioning of manufacturing, electrical maintenance, distribution transformer center, Dg set maintenance, carpentry and plumbing, afforestation green belt development, civil engineering, and logistics and transport, as well as installation, repair, and maintenance of air conditioning systems, including single zone, multiple zone, and ducted and ductless HVAC set-ups in commercial buildings.
Further, it develops a renewable power capacity of 240 MW; and provides engineering, procurement, and construction services of renewable energy and electrical projects.
The birth of BVG (Bharat Vikas Group) was as a housekeeping company with 8 people. It has now grown to become an integrated services company with employee strength of more than 56,000 across the country.
BVG India Limited was incorporated on 20 March 2002 as Bharat Vikas Utility Services Limited. The name of the company was subsequently changed to BVG India Limited on 7 July 2004.
The company heads its operations from its office in Pune, Maharashtra.

BVG India IPO Details

According to the DRHP the IPO comprises a fresh issue of equity shares of the face value of ₹10 each, comprising a fresh issue of INR 200 Cr and offer for sale of 7,196,214 shares by the existing shareholders of the company. The company has reserved 60 per cent of the net offer for qualified institutional buyers (QIBs),15 per cent of the offer shall be available for allocation on a proportionate basis to non-institutional investors (NIIs) and remaining 35 per cent shall be available for allocation to retail individual bidders.

BVG India
Offer for Sale

₹ 928.00 Cr

BVG India
Fresh Issue

₹ 200.00 Cr

BVG India
Total IPO Size

₹ 1128.00 Cr

BVG India Merger & Acquisition

Merger

On 21st March 2016, a scheme of arrangement was entered into between BVG India Limited(the company) and its subsidiary, Out-of-Home Media (India) Private Limited (“OOH”) and their respective shareholders and creditors. OOH demerged its entire business undertaking of providing digital out of home advertisings services into the company. Each shareholder of OOH was to be allotted one equity share in the Company in the ratio of one equity share for every 312 fully paid up equity shares held in OOH. The Scheme was approved by the High Court of Bombay by its order dated September 29, 2016 (“Order”) and came into effect from October 28, 2016.

BVG India Subsidiaries

BVG Kshitij Waste Management Services Private Limited
BVG Security Services Private Limited
BVG Skill Academy
BVG-UKSAS (SPV) Private Limited
Out-of-Home Media (India) Private Limited
BVG-UKSAS EMS Private Limited(Joint Venture)

BVG India Business Model

BVG Kshitij Waste Management(BKWMSPL) was incorporated on December 9, 2011. BKWMSPL is a private limited company registered with the Registrar of Companies and is engaged in the business of collection and management of waste products of whatsoever nature from various locations, agencies, industries, factories and other allied services.
BVG Security Services Private Limited(BSSPL) was incorporated on December 12, 2011. BSSPL is a private limited company registered with the Registrar of Companies and is engaged in the business of providing security services, security systems, and export and deal in security systems.
BVG Skill Academy(BSA) was incorporated on December 9, 2015. BSA is a company limited by shares incorporated under Section 8 of the Companies Act and registered with the Registrar of Companies, Maharashtra at Pune. BSA is engaged in the business of skill development, teaching programs and other allied activities.
BVG-UKSAS (SPV) Private Limited (“BUPL (SPV)”) was incorporated on October 17, 2019. BUPL (SPV) is a company set up to operate and maintain 102 and 108 emergency medical ambulance services in the state of Jammu and Kashmir. However, as of 30 September 2021, BUPL (SPV) has not undertaken any business activities.
Out-of-Home Media (India) Private Limited (“OOH”) was incorporated on August 8, 2006. OOH is a private limited company registered with the Registrar of Companies, Maharashtra at Mumbai and is engaged in the business of digital out-of-home advertising, services through closed-circuit televisions, posters, banners, hoarding, etc.
BVG-UKSAS EMS Private Limited (“BEPL”) was incorporated on March 23, 2016. BEPL is a company set up for providing quality emergency medical services in any part of Delhi for the operation and maintenance of CATS ambulance services and other allied services.

BVG India Revenue Segmentation

Facility services revenue
Other Income

Facility projects revenue

BVG India Product & Services

Company is providing business facilities services like:

Integrated Services
Total Facility Management
Mechanised Housekeeping
Shopfloor Cleaning
Paintshop Maintenance
Production Support
Landfilling Services
Solid Waste Management
Sewage Treatment Plant
Highrise Building Cleaning
Logistice & Transport etc.

BVG India Assets

The company's assets as at 31 March 2021:

Plant and equipment - INR 76.36 Cr
Vehicles - INR 36.49 Cr
Buildings - INR 35.88 Cr
Land Freehold- INR 2.55 Cr

BVG India Industry Overview

Industry Statistics

Facility Management (FM) is the industry focused on the efficient and effective delivery of logistics and other support services related to real property, it encompasses multiple disciplines to ensure functionality, comfort, safety and efficiency of the built environment by integrating people, place, process and technology, as defined by the International Organization for Standardization (ISO). In India, the facility management industry is in its early stage with only 40% market penetration.

According to the research by Frost & Sullivan(F&S) the FM market in India is estimated at ₹ 260.0 billion in FY'21.

The FM market had been on a rising trend till fiscal 2020 due to increasing number of residential and commercial spaces across the country. However, in FY'21 the market has seen a de-growth of -12.5% owing to the covid-19 pandemic.

Although the covid-19 pandemic has resulted in a decrease in the growth rate registered by the industry in fiscal 2021, the factors that have been contributing to the growth of this sector prior to the pandemic include increased preferences of people towards safe, clean and secured environment, need for personalized and specialized services for IT sector utilizing both hard and soft services, increase in investments from emerging sectors such as healthcare, retail and infrastructure sector etc.

Key trends in the FM industry include AI Introduction, Smart Workspace, Data Driven Decisions, Initiating increased digitization across services etc. outsourced Facilities Management services is the fastest emerging market in APAC region. The escalating growth in developing economies like India and China are anticipated to keep the demand upsurged. Also, the market is being accelerated by the increase in number of construction activities.

The competitors of the company are Jones Lang Lasalle India, ISS Facilities Services India, Dusters Total Solutions Services, CBRE South Asia etc.

Future Prospects

The FM market in India is estimated to grow with a CAGR of 27.0% between FY'21 and FY' 2023. Majority of the growth is expected to be driven by the consistent growth in demand from the commercial, retail and industrial sectors. In addition, the increasing preference for professional FM in the residential sector coupled with increased incidence of high rise residences that require unique FM solutions is expected to further drive growth.

Government Initiatives

The Occupational Safety, Health and Working Conditions Code, 2019 which was introduced in Lok Sabha by the Ministry of Labour and Employment is expected to drive the organizations to adopt facility management services to focus more on their core operations.
In 2019, The Government of India (GoI) has launched the National Infrastructure Pipeline (NIP) to provide world-class infrastructure across India. Under this program, the GoI has planned to invest close to INR 102 lakh crore on infrastructure projects by 2024-25.
The plan by the government to develop 100 smart cities, announced on 25 June 2015, is a clear indication of the growth opportunities in the FM space in the country, as it now goes beyond just the Tier I cities. This plan is expected to see a surge in investments into the infrastructure sector, which would inevitably create a need for professional FM services.
The Swachh Bharat Mission was initiated in October of 2014, which was divided into two segments for the rural areas and for the urban developments. This mission also created a higher demand for waste cleaning and management which also falls under the scope of many facility management companies and as a result has benefitted many of them.

BVG India Awards & Achievements

2017: Facility Management Firm of the Year
2012: Global Trust Business Excellence award
2012: Rural Rockstars
2011: India’s largest Housekeeping Firm
2011: Maharashtrian of the year
2009: Rural Liberators
2008: Cleaning Precision

BVG India Strengths

The company is one of the largest integrated services company and is the leading facility management company in the country. The company has an added advantage compared to its peers since it provides a comprehensive range of integrated services across multiple sectors.
Recently the company has decided to expand and enter into newer segments of facilities management like landscaping and gardening to tap the opportunities available in rejuvenation and urban transformation. In addition, the company is also planning differentiated offerings for the private and residential sectors in the near future. This depicts that the company is focusing on its long term growth which may be highly beneficial for its investors.
The company has also become a key player that manages Maharashtra’s Emergency Medical Services (MEMS) and has declared offering emergency response services and MEMS toll-Free ambulance services. They have served over 5.9 lakh patients since the beginning of the pandemic.

BVG India Shortcomings

Despite introducing new services and entering newer segments, the company has been unable to register any substantial technological advancements that are used in provision of company's services in multiple sectors.

BVG India Opportunities

The company should look to diversify into digital transformation in commercial buildings enabling people, processes, and technology to work together. This means transforming facilities management from an asset or plant-centered activity to one which focuses on end-user experiences and outcomes, which is one of the latest trends in facilities management.

BVG India Threats

The health and economic implications of the pandemic may have an impact on business operations and financial performance of the company.
Failure to comply with labour legislations may adversely impact operations and lead to loss of reputation.
The company also faces threat from competitors like Jones Lang Lasalle(JLL) India, Sodexo Facilities Management, ISS Facilities Services India etc.