Updater Services sets IPO price band at Rs 280-300, aims to raise Rs 640 crore

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Updater Services sets IPO price band at Rs 280-300, aims to raise Rs 640 crore
Credit: © Reuters.

Updater Services Ltd, a leading provider of integrated facilities management and business support services, has announced its initial public offering (IPO) will open for bidding on Monday, September 25, 2023. The company has fixed the price band for the IPO at Rs 280 to Rs 300 per share and aims to raise approximately Rs 640 crore from the primary offering. The three-day bidding process is scheduled to conclude on Wednesday, September 27.

The public offering will comprise of a fresh issue of equity shares aggregating up to Rs 400 crore and an Offer-for-Sale (OFS) of up to 80 lakh equity shares by promoter Tangi Facility Solutions Private Ltd and existing shareholders India Business Excellence Fund-II, and India Business Excellence Fund-IIA. The OFS is expected to total Rs 240 crore. The minimum lot size for an application is set at 50 shares.

The company has reserved about 75 per cent of the issue size for qualified institutional investors (QIBs), 15 per cent for non-institutional investors, and the remaining 10 per cent for retail investors. The bidding for anchor investors will open on Friday, September 22.

The proceeds from the IPO are planned to be used for repaying or prepaying certain borrowings, funding working capital requirements, pursuing inorganic initiatives, and general corporate activities. The funds raised from the OFS will be directed to the selling shareholders.

Established in 1990, Updater Services operates in the Business-to-Business (B2B) segment, offering a wide spectrum of business services across two segments: Facility Management & Other Services and Business Support Services. As of June 30, the company had a customer base of 2,797 across various sectors both domestically and internationally.

In the fiscal year ending March 31, 2023, the company posted a net profit of Rs 34.61 crore on revenue of Rs 2,112.09 crore, marking an increase from FY22 when the company reported a bottom line of Rs 57.37 crore on revenue of Rs 1,497.89 crore.

The book leading managers of Updater Services IPO are Iifl Securities Ltd, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited. The equity shares of the company will be listed on the BSE and the NSE. The allotment of shares is expected to be done by Wednesday, October 4, with the listing date set for Monday, October 9, 2023.

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