Updater Services IPO Set To Open On Sept 25: Don’t Miss GMP, Other Key Details

Updater Services IPO is all set to hit the primary market from September 25, 2023 i.e. Monday. The Mumbai based company has set the price band of Rs 280-300 per equity share for Rs 640-crore IPO and will remain open for subscribers till September 27, 2023. As per the IPO schedule, the shares are expected to be listed on BSE and NSE on October 9.

It is worth mentioning that merchant bankers to the issue are IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.

The IPO includes a fresh issue of shares worth Rs 400 crore and an offer-for-sale (OFS) of 80 lakh shares worth Rs 240 crore by 3 shareholders. Initial OFS size was 1.33 crore that came down to 1.09 crore in the addendum to the DRHP and was reduced more to 80 lakh share in the red herring prospectus.

Meanwhile, promoter Tangi Facility Solutions are expected to offload 40 lakh shares and remaining 40 lakh shares will be sold by India Business Excellence Funds II & IIA.

Ahead of the public issue opening, the company has told Indian exchanges that it has already generated Rs 285 crore from anchor investors through issuance of 95 lakh company shares at Rs 300 per share. Anchor investors include ICICI Prudential Funds, BNP Paribas Arbitrage, Franklin India Smaller Companies Fund, and Nomura Singapore, among others.

It is worth noting that a bidder can apply in lots and one lot of the IPO consists of 50 company shares. Tentative date for share allocation will be October 4, 2023. The official registrar of the public offer will be Link Intime India Private Ltd.

Updater Services plans to use fresh issue proceeds for the repayment of debt worth Rs 133 crore, working capital needs of Rs 115 crore along with inorganic initiatives at a cost of Rs 80 crore. Remaining funds are likely to be utilized for general corporate purposes. The company's consolidated debt reportedly stood at Rs 176.54 crore as of March 2023.

When it comes to peer details, Updater Services faces competition from publicly listed players like Quess Corp Limited, SIS Limited TeamLease Services Limited which are operating in the same business, according to Angel One.

Updater Services is the second-largest player in the integrated facilities management market in India. The company announced its net profit at Rs 34.6 crore for the year ended March 31, 2023, down 40% as against the preceding fiscal net profit due to weak operating performance.

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