Updater Services IPO: Diversified-Other Business Services company IPO to begin from September 25; Key Details here

Team Updater September 22, 2023
Updater Services is into Diversified-Other Business Services and is looking raise funds through Fresh Issue and Offer for Sale

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


IPO
Updater Services to raise around Rs 624 crores through public issue

Updater Services IPO is a public offering of shares by Raghunandana Tangirala and ShanthiTangirala. The IPO will open on September 25 and will close on September 27. The price band is ₹280 to ₹300 per share and the lot size is 50 shares. The issue size is ₹640. crore. The shares are expected to be listed on NSE, BSE on October 09 (^). Some additional information that you may find useful are: During the FY20 / FY21 / FY22 / H1FY23, IFM & Other services segment accounted for 91.57% / 90.46% / 79.59% / 71.81% whereas BSS segment accounted for 8.63% / 9.74% / 20.73% / 28.76%, of revenue from contracts with customers.: (**) - based on higher price band (^) indicative date

Promoters of the company are Raghunandana Tangirala and ShanthiTangirala Currently promoters hold 81.2% stake in the company.

Quick Pointers


  • Company aims to raise between Rs 624 to 640 crs through this IPO.
  • The net proceeds of the issue will be utilized to 1) Repayment / prepayment of borrowings amounting to Rs. 133 cr' and 2) Funding working capital requirements amounting to Rs. 115 cr.
  • Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 24-Sep-23.
  • Price band for the IPO has been fixed at Rs 280 to 300 per share and bid lot are in multiple of 50 shares. The implied market cap post-issue at Rs 1,894 to 2,001 crs.
  • As per the tentative schedule, allotment date of this IPO is most likely on October 04 and share are expected to be listed on NSE, BSE on October 09.
  • Company has direct peer competition in India'a IFM and BSS market, In Listed space peers include Quess Corp, SIS and Teamlease services.
  • IIFL Securities, Motilal Oswal Investment Advisors, SBI Capital Markets has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

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IPO Quick Snapshot


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.

During the FY20 / FY21 / FY22 / H1FY23, IFM & Other services segment accounted for 91.57% / 90.46% / 79.59% / 71.81% whereas BSS segment accounted for 8.63% / 9.74% / 20.73% / 28.76%, of revenue from contracts with customers.

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)


IPO Key Details:


IPO Dates


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IPO Issue and Subscription Details


Financials


Valuation


IPO Lead Manager Details


IPO Registrar and Transfer Agent (RTA) Details


Check Allotment Status of IPO

Please check below or visit Link Intime link at here to check allotment status of IPO

Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.

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