BLS Faces Worst Day Since 2020 Amid Government Tender Ban
Shares of BLS International Services faced a dramatic decline as the company encountered significant challenges. On October 13, 2023, the stock plummeted by as much as 18%, marking its worst day since March 2020. This decline followed a government ban preventing the company from participating in tenders for two years.
BLS International’s Stock Performance
As of 11:44 a.m. IST, BLS International’s shares were down approximately 13%, trading at 294.3 rupees. The decline made it the leading percentage loser on the Nifty small-cap index, which fell by 0.5% overall.
Government Ban Details
The Ministry of External Affairs issued a ban that prohibits BLS International from bidding on government tenders and contracts associated with Indian Missions abroad. This decision stems from ongoing court cases and complaints from applicants, although the ministry has not released further specifics regarding these issues.
Market Position and Competition
BLS International competes within the digital visa and passport services sector alongside larger entities like VFS Global and TeamLease Services. The company’s market position has been notably impacted by this recent government action.
Financial Implications and Market Outlook
- Indian Missions accounted for 12% of BLS International’s consolidated revenue in Q1 of the fiscal year 2026.
- Despite the ban, BLS assures that existing contracts with Indian Missions remain intact and will continue to operate.
- The company’s stock has experienced a 39% drop this year, which contrasts starkly with the small-cap index’s approximate decline of 4%.
Looking ahead, the immigration consulting services market in India is forecasted to grow at a compound annual growth rate of 7%-10% from 2025 to 2029. This growth is driven by sustained demand for international education and residency options, according to research from Technavio.
As BLS International navigates these challenges, its future financial stability and market position will depend on how effectively it can adapt to changing government policies and competitive pressures.
