What would Rs 1,000 crore IPO mean to Pune-based BVG India

Pune-based facility management company BVG India is in the initial stages of planning its IPO offering and is in the process of hiring bankers. As reported, the company is laying plans to raise up to Rs 1,000 crore with other modalities being worked out. As indicated in media reports, this IPO will aim at providing an exit to private equity fund 3i group, which currently owns about 26 per cent stake in the company. In 2011, the UK-based 3i Group Plc had bought this stake from Kotak India Growth Fund I, a fund managed by the Kotak Private Equity Group. Having also brought additional shares from the promoter family, the total investment in the company was worth Rs 200 crore. Reports also reveal that apart from giving a complete exit to 3i, BVG will use part of the IPO proceeds to fund acquisitions. BVG is among India’s largest integrated services companies with its offerings spanning facility management, emergency services and turnkey projects. It has grown to become an integrated services company with an employee strength of more than 65,000. During FY16, the company reported a total operating income of Rs 1,370.73 crore and PAT of Rs 117.03 crore, higher than Rs 1,135.19 crore and Rs 101.49 crore, respectively, a year earlier.