Updater Services IPO Detail 2023

Introduction

The Updater Services IPO will open on September 25 and close on September 27, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 640 crore through this public offering, consisting of 21,333,333 shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 280 to ₹ 300 per share.

Updater Services Limited (“the Company”)

Incorporated in 1991, this is a leading, focused, and integrated business services platform in India, offering integrated facilities management (“IFM”) services and business support services (“BSS”) to its clients with a pan-India presence. This is the second-largest player in the IFM market in India and has the widest service offering in the industry, making it a unique and differentiated player in the market.

These operate in the business-to-business (“B2B”) services space, offering a spectrum of business services that are broadly classified into the two following segments:

1. IFM & Other Services Segment; and
2. BSS Segment

Its portfolio of services, offered across these two business segments, includes the following:

Within its BSS segment, they offer audit and assurance services through its subsidiary, Matrix, and according to the F&S Report,

• Matrix is a leading audit and assurance company for dealer and distributor audits and retail audits, and its strong branch reach and field associate reach have driven the company to reach the top spot in India, with a market share of 16.2% in the financial year ended March 31, 2022.
• These also offer employee background verification check services through Matrix, and in this segment, Matrix is the third largest company in India with a share of 5.7% in the financial year ended March 31, 2022.

In addition, they provide sales enablement services through its subsidiaries Denave and Athena, and as per the F&S Report, Denave is the largest player in this segment, with a market share of 15.4% in India in the financial year ended March 31, 2022. In addition, they offer mailroom management services through our subsidiary, Avon, which is a market leader in India with a share of 15.5% in the mailroom management services market in the financial year ended March 31, 2022.

Company Key Metrics

Earning Per Share (EPS)	₹ 6.77 per Equity Share
Debt to Equity Ratio	0.46
ROE	9.40%
ROCE	14.17%
P/E (x)	44.31
Return on Net Worth (RoNW)	9.34%

Objects of the Issue,

1. Repayment and /or prepayment of certain borrowings availed by the Company.
2. Funding the working capital requirements.
3. Pursuing inorganic initiatives.
4. General corporate purposes.

Financial Highlights (Restated)

Particulars	FY 2022-23	FY 2021-22	FY 2020-21
Net Worth	380.89	340.43	285.26
Total Assets	1,216.95	874.57	579.49
Total Borrowings	176.54	58.68	11.61
Total Revenue	2,112.09	1,497.89	1,216.35
Profit After Tax	34.61	57.37	47.56

IPO details

Issue Type	Book Built Issue IPO
IPO Price	₹ 280 to ₹ 300 per share
Face Value	₹ 10 per share
Market Lot	50 Shares
Issue Size	21,333,333 shares (aggregating up to ₹ 640 crores)
Fresh Issue	13,333,333 shares (aggregating up to ₹ 400 crores)
Offer for Sale	8,000,000 shares (aggregating up to ₹ 240 crores)
Listing At	NSE and BSE

Shareholding Pattern

Shareholding pre-issue	53,369,355
Shareholding post issue	66,702,688

IPO Reservation

Categories	No. of shares offered
QIB shares offered	Not less than 75% of the offer
NII (HNI) shares offered	Not more than 15% of the offer
Retail shares offered	Not more than 10% of the offer

GMP: Updater Services IPO

GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.

Tentative Dates: Updater Services IPO

The issue opens for subscription on September 25, 2023, and closes for subscription on September 27, 2023 (both days inclusive). The basis of allotment will be finalised on October 4, 2023, and the refunds will be initiated on October 5, 2023. In addition, the demat credits are expected to happen on October 6, 2023, and the stock will be listed on the NSE and BSE  on October 9, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.

Opening Date	September 25, 2023
Closing Date	September 27, 2023
Basis of Allotment	October 4, 2023
Initiation of Refunds	October 5, 2023
A credit of shares to Demat A/c	October 6, 2023
Listing Date	October 9, 2023

Lot Size

The lot size of the Updater Services IPO is 50 shares. A retail-individual investor can apply for up to 13 lots, i.e. 650 shares of ₹ 195,000.

Applications	Lots	Shares	Amount
Retail (Minimum)	1	50	₹ 15,000
Retail (Maximum)	13	650	₹ 195,000
S-HNI (Minimum)	14	700	₹ 210,000
S-HNI (Maximum)	66	3,300	₹ 990,000
B-HNI (Minimum)	67	3,350	₹ 1,005,000

Promoters Holdings 

Raghunandana Tangirala, Shanthi Tangirala and Tangi Facility Solutions Private Limited are the promoter of the company.

Pre-issue Shares Holdings	80.58%
Post-issue Shares Holdings	–

Miscellaneous Information

Download Prospectus (PDF)	IPO DRHP IPO RHP Anchor Investors
Company Contact Information	Updater Services Limited No. 2/302-A, UDS Salai, Off Old Mahabalipuram Road, Thoraipakkam, Chennai 600 097, Tamil Nadu, India Phone: +91 44 24963234 / 0333 Email: compliance.officer@uds.in Website: https://www.uds.in/
IPO Registrar	Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: uds.ipo@linkintime.co.in Website: https://linkintime.co.in/mipo/ipoallotment.html
IPO Lead Manager(s)	IIFL Securities Ltd  Motilal Oswal Investment Advisors Limited  SBI Capital Markets Limited

FAQs

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