Incorporated in 1990, Updater Services offering facility management services and business support services is coming up with an IPO. This company primarily operates in the business-to-business (B2B) services segment offering a range of business services. With so many IPOs coming up, investors are looking forward to benefiting the most out of listing gains that are seen in some IPOs.
Updater Services Limited IPO will open for subscription from 25th September 2023 to 27th September 2023.
Here are all the important details of Updater Services Limited IPO, including issue price, IPO allotment date, GMP, benefits, risks of investing in this IPO, and more.
Read More: Top traded stocks by volume on NSE in India
The key details of Updater Services Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are:
|IPO Opening Date||Friday – 25th September 2023|
|IPO Closing Date||Monday – 27th September 2023|
|Issue Type||Book Built Issue IPO|
|Face Value of Shares||Rs. 10 per share|
|IPO Price Band||Rs. 280 – Rs. 300 per share|
|IPO Size||Rs. 640 crores|
|Offer for Sale||Rs. 240 crores|
|Fresh Issue||Rs. 400 crores|
- IPO Dates
The important dates for Updater Services Limited IPO are highlighted below:
|Opening date||Monday – 25th September 2023|
|Closing Date||Wednesday – 27th September 2023|
|Allotment date||Wednesday – 4th October 2023|
|Refund Date||Thursday – 5th October 2023|
|Share Credit Date||Friday – 6th October 2023|
|Listing Date||Monday – 9th October 2023|
- IPO Lot Sizes
Investors can subscribe to Updater Services Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
|Investments in lots||Minimum – 1 lot|
Maximum – 13 lots
|Investment amount||Minimum – Rs. 15,000|
Maximum – Rs. 1,95,000
|Shares||Minimum – 50|
Maximum – 650
- IPO Reservation
Here’s the summary of reservation for different applicant categories in this IPO:
|Category of Investor||Reservation Percentage|
|Retail Individual Investor||35%|
|QIB (Qualified Institutional Buyer)||50%|
|NII (Non-Institutional Bidders)||15%|
Updater Services Limited IPO Objectives
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below:
- The company aims to use the IPO issue proceeds for debt repayment amounting to Rs 133 crores. As of Mar’23, the company’s consolidated debt stood at Rs 176.54 crores.
- It will also use the proceeds for working capital requirements of Rs 115 crores
- The IPO objectives also include inorganic initiatives to be undertaken worth Rs 80 crores.
- The remaining funds will be used for general corporate purposes.
Top things to know about Updater Services Limited IPO
Updater Services Ltd was founded in 1990 by Raghunandana Tangirala. The company primarily offers –
- Integrated facilities management (IFM) services and
- Business support services (BSS).
Today, it carries over 30 years of experience in the country’s integrated business services industry. Since its inception, the company has managed to become one of the leading providers of business services in India. It boasts of over 1,300 customers across the country.
Within the IFM & other services segment, the company operates across service lines such as soft services, production support services, engineering services, warehousing management, pest control and horticulture that have been added by us organically, over a period of time.
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.
- BSS segment offers audit and assurance services through the subsidiary named Matrix.
Updater Services Ltd’s main listed competitors are:
- Quess Corp Limited,
- SIS Limited,
- TeamLease Services Limited
Is Updater Services Limited profitable – Know the financial performance of Updater Services Limited
Updater Services Limited financials are given in the table below:
|Year||Assets (Rs. in cr)||Revenue (Rs. in cr)||Profit After Tax (Rs. in cr)||EPS||Total Borrowing (Rs. in cr)|
What are the strengths of Updater Services Limited?
Some of the key strengths of Updater Services Limited IPO that investors can take note of are:
|Business model||The company enjoys leadership in India’s business services sector, offering Integrated Facility Management (IFM) and Business Support services across the country|
|Customer base||The company caters to a range of industries including healthcare, automobile manufacturing, BFSI, retail, IT/ITeS, global technology, consumer products, airlines, telecom and communications.|
|Past track record||The company has managed to successfully expand via strategic acquisitions. This has helped it to diversify its revenue streams and enhance its service offerings.|
What is the risk of investing in Updater Services Limited IPO?
Here are some of the risks that investors of Updater Services Limited IPO should know:
|Legal proceedings||The company and its promoters are currently facing legal cases. In case of any adverse ruling, the business could be impacted due to financial penalties or liabilities.|
|Competition||The company operates in a highly competitive industry. This sector has low barriers to entry, allowing more competition to flow in easily. In case the company fails to effectively manage its business, its cash flow could be adversely affected.|
|Financial performance||While the company’s sales have shown consistent growth, its profits have not been consistent. The company’s profit margins range between 1% to 3%, which is too low as per industry standards.|
What is the Grey Market Premium (GMP) of Updater Services Limited IPO?
As of September 21st, 2023, the grey market premium for the shares of Updater Services Limited IPO is not known.
Is Updater Services Limited IPO safe for investment?
While Updater Services Limited enjoys market leadership in its sector, it has not had a consistent financial track record. Since the sector allows easy entrance for companies, Updater Services Limited may face stiff competition in the future. Investors must carefully weigh the pros and cons of this company before investing in the IPO.
How to apply for Updater Services Limited IPO?
Investors can invest in this IPO through the Fisdom app.