Chennai based Updater Services IPO: Opens on Sept 25 and closes on Srpt 27

BILKULONLINE

Ahmedabad, Sept 23: Updater Services IPO is a book built issue of Rs 640.00 crores. The issue is a combination of fresh issue of 1.33 crore shares aggregating to Rs 400.00 crores and offer for sale of 0.8 crore shares aggregating to Rs 240.00 crores.

Updater Services IPO opens for subscription on September 25, 2023 and closes on September 27, 2023. The allotment for the Updater Services IPO is expected to be finalized on Wednesday, October 4, 2023. Updater Services IPO will list on BSE, NSE with tentative listing date fixed as Monday, October 9, 2023.

Updater Services IPO price band is set at ₹280 to ₹300 per share. The minimum lot size for an application is 50 Shares. The minimum amount of investment required by retail investors is ₹15,000. The minimum lot size investment for sNII is 14 lots (700 shares), amounting to ₹210,000, and for bNII, it is 67 lots (3,350 shares), amounting to ₹1,005,000.

Highlights of the IPO issue of Updater Services IPO:

Here are some of the key highlights to the public issue of Updater Services IPO.

• Updater Services IPO has a face value of ₹10 per share while the price band for the book building IPO has been set in the band of ₹280 to ₹300 per share. The final price will be discovered within this band through the process of book building.
• The IPO of Updater Services Ltd will be a combination of a fresh issue and an offer for sale (OFS). The fresh issue portion comprises the issue of 1,33,33,333 shares (1.33 crore shares approximately), which at the upper price band of ₹300 per share will translate into fresh issue size of ₹400 crore.
• The offer for sale (OFS) portion of the IPO comprises the issue of 80,00,000 shares (80 lakh shares), which at the upper price band of ₹300 per share will translate into an offer for sale (OFS) size of ₹240 crore.
• Therefore, the overall IPO portion will comprise of the issue of 2,13,33,333 shares (2.13 crore shares approximately), which at the upper price band of ₹300 per share will translate into a total IPO issue size of ₹640 crore.

While the fresh issue will be capital and EPS dilutive, the offer for sale portion will only result in transfer of ownership.

Incorporated in 1990 by Raghu Tangirala, CM & MD of  Updater Services Limited offers facility management services and business support services (“BSS”). The company operates in the Business-to-Business (“B2B”) services space offering a spectrum of business services, which are broadly classified into the two following segments: 1. IFM & Other Services Segment; and 2. BSS Segment.

In FM & Other Services Segment; Production Support Services, Soft Services, Engineering Services, Washroom and Femmenine Hygiene, Warehouse management, General Staffing and more.

IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd, are the book running lead managers to the issue, and the registrar is Link Intime India Private Ltd.

The company’s listed industry peers are Quess Corp Ltd(with P/E ratio of 28.38), SIS Ltd (with P/E ratio of 19.74), and TeamLease Services Ltd (with P/E ratio of 40.96)

Updater Services IPO: The initial public offering comprises fresh issuance of shares worth Rs 400 crore and an offer-for-sale (OFS) of 80 lakh equity shares by promoter and investors. The anchor book will be launched for a day on September 22, while the public issue will close on September 27.

With a pan-India presence, the facilities management and business support services provider will utilise net fresh issue proceeds for repaying debts amounting to Rs 133 crore, working capital requirements of Rs 115 crore, and inorganic initiatives at a cost of Rs 80 crore. The remaining funds will be used for general corporate purposes.

Top Management of Updater Services ltd including Raghu Tangirala, CM & MD, Ramneet Gulati, Vice President and Balalji Swaminathan, CFO were present in Ahmedabad on Friday to brief the media about thier company’s IPO.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance.  Kindly go through the details of the offer before investing.