BLS International, a key player in visa and consular services, has announced the acquisition of Dubai-based Citizenship Invest (CI) for $31 million (Rs 260 crore). Despite this significant investment, BLS International’s shares have fallen over 3 percent following the announcement, just after reaching a 52-week high.
Conversely, the company’s listed subsidiary, BLS E-Services, saw a notable increase of over 7 percent in its share price. During the Annual General Meeting (AGM) held on September 12, BLS International declared an interim dividend of 50 paise per share for FY24, along with a final dividend of the same amount. The AGM also saw Shikhar Aggarwal reappointed as Joint Managing Director for an additional three years.
Additionally, BLS International approved a plan to raise up to Rs 2,000 crore through new share issuance, as decided at the AGM.
The acquisition of Citizenship Invest, a firm specializing in long-term visa services and residency programs, is pending regulatory approval and will be funded through internal resources. BLS International anticipates that the integration of CI will enhance their visa and consular services, aligning with their strategic goal to boost EBITDA. Shikhar Aggarwal, Joint Managing Director, stated, “This aligns with our strategic vision of enhancing synergies and boosting EBITDA. The company’s outstanding 99% application success rate, combined with high revenue per application, aligns perfectly with our customer-centric philosophy.”
Visa and consular services contributed 81 percent to BLS’ FY24 revenue. The company expects a significant increase in global air passenger traffic, forecasting 3.2 billion passengers annually by 2030, which is likely to spur growth in visa-related services. A recent Mordor Intelligence report indicates that aircraft deliveries are set to rise from over 8,100 between 2017-2023 to more than 12,800 from 2024-2030, driving demand for visa services.
As more countries outsource visa processing, private companies like BLS are expected to handle a substantial portion of global visa applications. The World Tourism Barometer projects that outsourced entities will manage half of the world’s visa processing needs by next year.
Looking ahead, the Company plans to leverage its digital BLS Store platform, under BLS E-Services, to offer additional digital services and cross-sell products.
