Updater Services IPO ends with 2.90x subscription

Published on Sep 28, 2023 11:34

The Qualified Institutional Buyers (QIBs) category was subscribed 4.48 times. The Retail Individual Investors (RIIs) category was subscribed 1.39 times. The Non Institutional Investors (NIIs) category was subscribed 0.85 times.

The initial public offer (IPO) of Updater Services received bids for 3,47,45,250 shares as against 1,19,99,999 shares on offer. The issue was subscribed 2.90 times.

The issue opened for bidding on 25 September 2023 and it closed on 27 September 2023. The price band of the IPO was fixed at Rs 280-300 per share.

The offer comprises fresh issue of equities aggregating to Rs 400 crore and offer for sale (OFS) of 80,00,000 equity shares of Rs 10 face value.

On post issue expanded equity, the holding of India Business Excellence Fund II and India Business Excellence Fund IIA will stand reduced to 3.13% and 4.41%, respectively.

Of the net proceeds of fresh issue, the company will be using Rs 133 crore towards re and pre-payment of certain borrowings availed by the company, Rs 115 crore will be used towards funding working capital requirements, Rs 80 crore towards pursuing inorganic initiatives and the balance for general corporate purposes.

Consolidated outstanding borrowings (gross) as end of 31 July 2023, was Rs 194.126 crore.

Ahead of the IPO, Updater Services on 22 September 2023, raised Rs 288 crore from anchor investors. The board allotted 96 lakh shares at Rs 300 each to 18 anchor investors.

Updater Services, a Chennai-based company, is a leading integrated business services platform in India offering integrated facilities management (IFM) services and business support services (BSS) to customers across diverse industries and regions of the country. The company is the second largest player in the IFM market in India and has the widest service offering in the industry.

The company reported a net profit of Rs 35.79 crore and net sales of Rs 2,098.89 crore for the twelve months ended on 31 March 2023.