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Pune-based integrated facilities management company BVG India is set to launch an IPO to raise ₹1,200-1,300 crore, aiming to reduce debt, expand operations, and explore new business opportunities.
BVG India, an integrated facilities management company based in Pune, is preparing to launch an initial public offering (IPO) with the goal of raising between ₹1,200 and ₹1,300 crore. According to market sources, the funds will be utilized to reduce the company's existing net debt of ₹391 crore, expand its footprint in current operational segments, and pursue new business ventures.
Part of the IPO proceeds will also facilitate the exit of private equity firm 3i, which invested ₹200 crore in BVG India back in 2011. The company reported revenues of ₹1,674 crore in fiscal year 2020-2021, with EBITDA margins of 14%. In the preceding fiscal year, FY20, revenues stood at ₹1,900 crore.
As part of its expansion strategy, BVG India intends to undertake facility management projects in landscaping and gardening. This move aims to capitalize on opportunities arising from government initiatives such as the Bharat Mala infrastructure scheme and the Atal Mission for Rejuvenation and Urban Transformation, as well as projects in the private and residential sectors. BVG has recently secured a high-end villa project in Hyderabad and the Statue of Unity project in Gujarat.
The company also plans to broaden its service offerings to BFSI clients, including HVAC (heating, ventilation, and air conditioning) and power-station maintenance, along with water management at canteens and washrooms. BVG is exploring opportunities in the industrial and consumer sectors, such as automobile & auto ancillary, chemicals, FMCG, IT/ITES, electrical & electronics, oil & gas, and power & energy.
BVG India's clientele includes 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 its key clients.
A Frost & Sullivan report indicates that the facilities management business in India has a potential of ₹1.3 lakh crore and is projected to grow at a CAGR of 27% over the next two years. BVG India holds a 6.4% market share in the integrated facilities management services market in India for FY2020-2021.
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