- About Updater Services IPO
- Updater Services IPO Date & Price Band Details
- Updater Services IPO Market Lot
- Updater Services IPO Allotment & Listing Dates
- The objectives of the Updater Services IPO are as follows:
- Profit & Loss (All Figures in Crores, Adjusted EPS in Rs.)
- Balance Sheet (All Figures are in Crores.)
Updater Services has officially announced the dates for its upcoming IPO. The IPO is scheduled to open on September 25th and will run until September 27th. During this time, the company aims to raise approximately ₹640 crores through the IPO. This funding will be generated through a combination of a fresh issue of ₹400 crores and an offer for sale of up to 8,000,000 shares, each with a face value of ₹10.
In terms of the allocation of shares, the retail quota will make up 10% of the offering, while Qualified Institutional Buyers (QIBs) will have access to 75% of the shares, and High Net Worth Individuals (HNIs) will be allocated 15%.
About Updater Services IPO
Updater Services Ltd was founded in 1990 with a primary focus on providing facility management and business support services. The company primarily operates in the Business-to-Business (B2B) services sector, offering a wide range of business services. These services can be broadly categorized into two segments: the Internal Facilities Management (IFM) segment and the Business Support Services (BSS) segment.
In the IFM segment, Updater Services Ltd offers a variety of services, including production support, soft services, engineering services, warehouse management, and general staffing. On the other hand, the BSS segment provides audit and assurance services through its subsidiary company. Additionally, it offers support services such as employee background verification, airport ground handling, sales enablement, and more.
Updater Services Ltd serves a diverse customer base, encompassing over 2,797 customers across various sectors, including both domestic and global clients. Some of its notable customers in the support service sector include Procter & Gamble Home Products Limited, Aditya Birla Fashion and Retail Limited, Microsoft India Ltd, Hyundai Motors India Limited, Saint-Gobain India, and many others. The company tailors its operations based on customer requirements, offering both offsite and onsite services. It operates throughout India via an extensive network of over 4,331 locations, excluding staffing locations, with logistics managed from 129 points of presence. Of these, 116 offices are located in India, and 13 offices are situated abroad.
Updater Services Ltd’s public issue is being lead-managed by IIF Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets. The registrar to the issue is Link Intime India Private Ltd.
Here are some key highlights of the Updater Services IPO:
- The face value of Updater Services IPO shares is ₹10 per share, with a price band set between ₹280 and ₹300 per share. The final share price will be determined through the book-building process.
- The IPO includes a combination of a fresh issue and an offer for sale (OFS). The fresh issue comprises 1,33,33,333 shares (approximately 1.33 crore shares) with a total value of ₹400 crore at the upper price band of ₹300 per share.
- The OFS portion of the IPO consists of 80,00,000 shares (80 lakh shares) with a total value of ₹240 crore at the upper price band of ₹300 per share.
- Therefore, the overall IPO includes the issuance of 2,13,33,333 shares (approximately 2.13 crore shares) with a total IPO issue size of ₹640 crore at the upper price band of ₹300 per share.
- While the fresh issue will result in capital and EPS dilution, the OFS portion will involve the transfer of ownership. The OFS portion will have three selling shareholders, as detailed below:
- Tangi Facility Solutions (Promoter): 40 lakh shares, ₹320 crore.
- India Business Excellence Fund II (Investor): 8 lakh shares, ₹64 crore.
- India Business Excellence Fund IIA (Investor): 32 lakh shares, ₹256 crore.
- Total OFS Size: 80 lakh shares, ₹640 crore.
Updater Services IPO Date & Price Band Details
| IPO Date | September 25, 2023 – September 27, 2023 |
|---|---|
| IPO Size | Approximately ₹640 Crores |
| Fresh Issue | Approximately ₹400 Crores |
| Offer for Sale | Approximately 8,000,000 Shares |
| Face Value | ₹10 Per Equity Share |
| Price Band | ₹280 to ₹300 Per Share |
| IPO Listing | BSE & NSE |
| Retail Quota | 10% |
| QIB Quota | 75% |
| NII Quota | 15% |
| Discount | N/A |
| DRHP Draft Prospectus | Click Here |
| RHP Draft Prospectus | Click Here |
Updater Services IPO Market Lot
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 50 | ₹15,000 |
| Retail Maximum | 13 | 650 | ₹195,000 |
| S-HNI Minimum | 14 | 700 | ₹210,000 |
| B-HNI Minimum | 68 | 3350 | ₹1,005,000 |
Updater Services IPO Allotment & Listing Dates
| Event | Date |
|---|---|
| Anchor Investors Allotment | September 24, 2023 |
| IPO Open Date | September 25, 2023 |
| IPO Close Date | September 27, 2023 |
| Basis of Allotment | October 4, 2023 |
| Refunds | October 5, 2023 |
| Credit to Demat Account | October 6, 2023 |
| IPO Listing Date | October 9, 2023 |
The objectives of the Updater Services IPO are as follows:
- Repayment and/or prepayment of certain borrowings obtained by the Company.
- Funding the Company’s working capital requirements.
- Pursuing inorganic initiatives.
- Meeting general corporate purposes.
Profit & Loss (All Figures in Crores, Adjusted EPS in Rs.)
| PARTICULARS | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 |
|---|---|---|---|---|---|
| Net Sales | 820.43 | 944.84 | 1,093.79 | 1,005.17 | 1,070.67 |
| Total Expenditure | 778.35 | 905.80 | 1,042.36 | 966.29 | 1,034.84 |
| Operating Profit | 42.08 | 39.04 | 51.43 | 38.87 | 35.83 |
| Other Income | 2.30 | 2.45 | 0.96 | 4.97 | 13.83 |
| Interest | 1.60 | 3.41 | 9.90 | 6.34 | 7.28 |
| Depreciation | 5.41 | 6.62 | 6.72 | 5.80 | 5.65 |
| Exceptional Items | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 37.37 | 31.46 | 35.77 | 31.71 | 36.73 |
| Provision for Tax | 2.79 | 1.55 | 3.23 | 0.87 | -0.21 |
| Net Profit | 34.58 | 29.91 | 32.54 | 30.83 | 36.94 |
| Adjusted EPS (Rs.) | 0.65 | 0.57 | 0.62 | 0.58 | 0.70 |
Balance Sheet (All Figures are in Crores.)
| PARTICULARS | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 52.82 | 52.82 | 52.82 | 52.82 | 52.82 |
| Total Reserves | 116.57 | 145.19 | 177.53 | 200.13 | 235.57 |
| Borrowings | 0 | 0 | 0 | 0 | 0 |
| Other N/C liabilities | -6.79 | -9.58 | 19.49 | 82.10 | 91.96 |
| Current liabilities | 141.51 | 172.67 | 259.65 | 195.90 | 263.81 |
| Total Liabilities | 304.11 | 361.09 | 509.49 | 530.95 | 644.16 |
| Assets | |||||
| Net Block | 11.48 | 13.21 | 12.24 | 8.84 | 22.97 |
| Capital WIP | 0 | 0 | 0.01 | 0 | 1.85 |
| Intangible WIP | 0 | 0 | 0 | 0 | 0 |
| Investments | 24.83 | 25.27 | 92.77 | 92.77 | 166.98 |
| Loans & Advances | 6.05 | 6.10 | 42.50 | 137.39 | 151.76 |
| Other N/C Assets | 3.31 | 6.85 | 14.22 | 0.41 | 3.57 |
| Current Assets | 258.44 | 309.65 | 347.75 | 291.55 | 297.04 |
| Total Assets | 304.11 | 361.09 | 509.49 | 530.95 | 644.16 |
| Peer Group Companies | Quess Corp Limited, SIS Limited, TeamLease Services Limited |
|---|---|
| Company Promoters | Raghunandana Tangirala, Shanthi Tangirala, Tangi Facility Solutions Private Limited |
| Updater Services IPO Registrar | Link Intime India Private Ltd |
| Registrar Contact Information | – Phone: +91-22-4918 6270 |
| – Email: uds.ipo@linkintime.co.in | |
| – Website: Link Intime | |
| Check Allotment Status | Check Updater Services IPO allotment status on Linkintime website allotment URL. Click Here |
| Lead Managers (Merchant Bankers) | IIFL Securities Ltd, Motilal Oswal Investment Advisors Limited, SBI Capital Markets Limited |
| Company Address | Updater Services Limited |
| No. 2/302-A, UDS Salai, | |
| Off Old Mahabalipuram Road, Thoraipakkam, | |
| Chennai 600 097, Tamil Nadu, India | |
| Company Contact Information | – Phone: +91 44 24963234 / 0333 |
| – Email: compliance.officer@uds.in | |
| – Website: Updater Services | |
| Allotment status | Click here |
Naren is a finance graduate who is passionate about cryptocurrency and blockchain technology. He demonstrates his expertise in these subjects by writing for cryptoetf.in. Thanks to his finance background, he is able to write effectively about cryptocurrency.