Other Business Services Company Updater Services files DRHP with SEBI for the proposed IPO; Key Details here

Updater Services is into Diversified Other Business Services and is looking raise funds through Fresh Issue and Offer for Sale

Updater Services to raise Fresh Issue aggregating up to Rs. 400 crores and an Offer for Sale 13,300,000 Equity Shares through public issue IPO

Updater Services IPO: Updater Services Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 400 crores and an Offer for Sale up to 13,300,000 Equity Shares.. IIFL Securities, Motilal Oswal Investment Advisors, SBI Capital Markets have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 400 Crs and offer-for-sale (OFS) of up to 13,300,000 equity shares by Tangi Facility Solutions Private Limited, India Business Excellence Fund -II and India Business Excellence Fund –IIA who will offload Up to 6,650,000Equity Shares, Up to 1,330,000Equity Shares and Up to 5,320,000Equity Shares respectively...

Objects of the issue:
1) Repayment / prepayment of borrowings amounting to Rs. 133 cr', 2) Funding working capital requirements amounting to Rs. 115 cr., 3) Pursuing inorganic initiatives for which envisaged Rs. 80 cr.., and 4) General corporate purposes.

Promoters of Updater Services are Raghunandana Tangirala and ShanthiTangirala and holds 81.2% stake in the company.

About Company:
Updater services established in 2003 and is services platform offering integrated facilities management (“IFM”) services and business support services (“BSS”) with a pan-India presence. Company is the second largest player in the IFM market in India and have the widest service offering in the industry. (Source: F&S Report) Copmany providing services to customer segments across sectors including FMCG, manufacturing and engineering, BFSI, healthcare, IT / IteS, automobiles, logistics and warehousing, airports, ports, infrastructure and retail, among others.

About Industry:
The total IFM market in India in the Financial Year ended March 31, 2022 is valued at ₹89,475 crore and around 39% of this is outsourced to 3rdparty companies. (Source: F&S Report)Between the Financial Year ended March 31, 2018 and the Financial Year ended March 31, 2022, the outsourced Indian IFM market grew at a CAGR of 8.4%. (Source: F&S Report)The outsourced IFM market is expected to grow at a CAGR of 16.9% from the Financial Year ended March 31, 2022 –the Financial Year ended March 31, 2027 and reach ₹75,478 crore.(Source: F&S Report)The market for BSS is valued at ₹5,230 crore in the Financial Year ended March 31, 2022. (Source: F&S Report)The market recorded a CAGR of 1.9% from the Financial Year ended March 31, 2018 to the Financial Year ended March 31, 2022. (Source: F&S Report)The BSS market is expected to grow at a CAGR of 16.8% from the Financial Year ended March 31, 2022 –the Financial Year ended March 31, 2027 and reach ₹ 11,354 crore.(Source: F&S Report)

Source: SEBI, BSE, NSE, DRHP, Updater Services, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.