The initial public offering of Updater Services will open for bidding on Monday, September 25. The company would offer its shares in the fixed price band of 280-300 per equity shares. Potential bidders would be required to bid for a lot size of 50 equity shares and in multiples thereafter. The three-day bidding will conclude on Wednesday, September 27.
Incorporated in 1990, Updater Services, offers facility management services and business support services. The company operates in the business-to-business (B2B) services space offering a spectrum of business services. They are broadly classified into the two following segments- IFM & other services segment and BSS Segment.
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The company is looking to raise about Rs 640 from its primary offering, which includes a fresh share sale of Rs 400 crore. Promoter Tangi Facility Solutions and selling investors India Business Excellence Fund will cumulatively offload 80 lakh equity shares in an offer for sale (OFS), aggregating to Rs 240 crore. Anchor book will open on Friday, September 22.
Net proceeds from the issue will be utilised towards repayment and/or prepayment of certain borrowings availed by the company; funding the working capital requirements; pursuing inorganic initiatives; and general corporate purposes. Proceeds from the OFS would go to the selling shareholders.
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The company deals in two key segments. The IFM & other services segment includes production support services, soft services, engineering services, washroom and feminine hygiene, warehouse management, general staffing and more. On the other hand, BSS segment offers audit and assurance services through the subsidiary named Matrix.
Updater Services served 2,797 customers across various sectors, both domestic and global, including as Procter & Gamble Home Products (P&G), Aditya Birla Fashion and Retail (ABFRL), Microsoft, Hyundai Motor India, Saint-Gobain India as of June 30, 2023. It has a widespread network consisting of 4,331 locations, 116 offices situated in India and 13 offices situated overseas.
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For the year ended on March 31, Updater Services reported a net profit of Rs 34.61 crore with a revenue of Rs 2,112.09 crore. Its bottomline came in at Rs 57.37 crore with a revenue of Rs 1,497.89 crore for FY22.
Not more than 75 per cent of the offer of Updater Services has been reserved for the qualified institutional bidders, while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will get the only remaining 10 per cent of the issue.
IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets are the book-running lead managers for the issue, while Link Intime India has been appointed as the registrar to the issue. Shares of the company will be listed on the mainboard of both BSE and NSE.
