Pune-based integrated facilities management company BVG India plans to raise Rs 1,200-1,300 crore through an initial public offering (IPO), to foray into new areas in facilities management, over the next two-three months, according to market sources. The company will be using the proceeds to bring down its present net debt of Rs 391 crore, and expand its reach in the segments that it already operates in, while taking on new business opportunities. Part of the proceeds will also go towards giving exit to the private equity firm 3i, which invested Rs 200 crore in the company back in 2011.
The company reported revenues of Rs 1,674 crore in financial year 2020-2021, while reporting Ebitda margins of 14%. The company had recorded Rs 1,900 crore revenues in FY20.As part of its expansion plans, BVG plans to undertake facility management projects in landscaping and gardening to tap the opportunities given by government schemes such as Bharat Mala infra scheme and Atal Mission for Rejuvenation and Urban Transformation as well as private sector and residential sectors.
BVG has recently bagged a high-end villa project in Hyderabad as well as the Statue of Unity project in Gujarat, sources said.The company intends to expand the scope of services to BFSI clients to include HVAC (heating, ventilation and air conditioning) and power-station maintenance, water management at canteens and washrooms.It is looking at opportunities in the industrial and consumer sectors like automobile & auto ancillary, chemicals, FMCG, IT/ITES, electrical & electronics, oil & gas, power & energy sectors, sources added.
Some of the key clients of BVG include Tata Motors, Bajaj Auto, Bosch, Fiat India Automobiles, UPL and Hindustan Aeronautics. It also provides services to government establishments like the Parliament House, Supreme Court, RBI, and the president’s and prime minister’s residences. In the education sector, IIM Ahmedabad and Doon School are among some of the key clients.According to a recent Frost & Sullivan report, the facilities management business in India has a potential of Rs 1.3 lakh crore and is estimated to grow with a CAGR of 27% over the next two years. BVG has a 6.4% market share in the integrated facilities management services market in India in FY2020-2021.