Updater Services Shares Receive Tepid Response On Day 1 Of Listing: Shares Debut At 5% Discount

Updater Services IPO shares got listed on Indian bourses today. The company's shares saw a subdued stock market debut as the stock got listed 5% lower at Rs 285 on the NSE against the issue price of Rs 300. Updater Services Limited shares were listed at Rs 299.90 per share on BSE.

The initial public offering (IPO) of Updater Services IPO opened for subscription on Monday, September 25, and closed on Wednesday, September 27.

The Updater Services IPO was subscribed 2.9 times with bids coming in for 3.47 crore equity shares against 1.2 crore shares. The issue was subscribed 4.50 times by the qualified institutional bidders (QIBs), the allocation for retail investors was subscribed 1.45 times, while the non-institutional investors (NIIs) portion was booked just 89% during the three-day bidding process.

The price band of the Updater Services IPO was set in the range of Rs 280 to Rs 300 per share with a face value of Rs 10.

Updater Services IPO:

Updater IPO comprised a fresh issue of shares of up to Rs 400 crore and an offer for sale (OFS) of up to 8,000,000 equity shares of face value of Rs 10 each by a promoter and others.

The Chennai-based Updater Services raised a total of Rs 640 crore from its primary stake sale.

The company is expected to utilize the net proceeds from the IPO to repay some borrowings it has taken out, support working capital needs, pursue inorganic activities, and for general corporate purposes.

The company had appointed IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd, as the book-running lead managers to the issue.

For FY22, the company reported revenue of Rs 1,483.55 crore compared to Rs 1,210.03 crore in FY21. During this period, the company's net profit stood at Rs 57.4 crore compared to Rs 47.5 crore in the previous year.

Updater Services IPO GMP today

Updater IPO GMP today was Rs 0, which indicated that shares were trading at their issue price of Rs 300 with no premium or discount in the grey market according to market observers.