- Price Band fixed at ₹ 280 to ₹ 300 per equity share of face value of ₹ 10 each
- Bid/ Offer will open on Monday, September 25, 2023 and close on Wednesday, September 27, 2023
- IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, SEPT 22
Chennai-based Integrated facilities management, Updater Services Limited on Friday announced its IPO opens for subscription on Monday, September 25, to raise ₹400 crore via fresh issue of equity shares and include an offer for sale of up to 80 lakh equity shares worth ₹240 crore by selling shareholders. It will close on Wednesday, September 27. The IPO price band has been fixed in the range of ₹280 to ₹300 per equity share of face value of ₹10.
It has mobilised ₹288 crore via anchor book, a part of qualified institutional buyers (QIB), on Friday, ahead of issue opening.
“…. has finalised allocation of 96 lakh equity shares to anchor investors, at a price of ₹300 per share,” the company said in its filing to exchanges.
Total 18 investors participated in the anchor book, including marquee names like Societe Generale, Copthall Mauritius Investment, Citigroup Global, BNP Paribas Arbitrage – ODI and Nomura Singapore.
Domestic participants also invested in the company including ICICI Prudential Mutual Fund, Franklin India, Aditya Birla Sun Life Insurance, Bandhan Mutual Fund, Motilal Oswal, and 360 One Special Opportunities Fund, via anchor book.
“Out of total allocation to anchor investors, 36,66,750 equity shares were allocated to three domestic mutual funds through a total of six schemes,” Updater Services said.
Updater Services IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter.
Updater Services IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.
Updater Services IPO comprises a fresh issue of shares of up to ₹400 crore and an offer for sale (OFS) of up 8,000,000 equity shares of face value of ₹10 each by a promoter and others.
Promoter Tangi Facility Solutions Private Ltd will offload 40 lakh shares in the IPO and two private equity funds, India Business Excellence Fund-II and India Business Excellence Fund–IIA, will sell 8 lakh and 32 lakh shares, respectively.
The company proposes to utilise the net proceeds raised through the fresh issue towards repayment and/or prepayment of certain outstanding borrowings amounting to ₹133 crore; further, it intends to utilise ₹80 crore towards pursuing unidentified inorganic initiatives while ₹115 crore has been earmarked towards funding working capital requirements and the balance towards general corporate purposes.
Updater Services Ltd offers integrated facilities management (IFM) services and business support services (BSS). It was founded in 1990 by Raghunandana Tangirala, who has over 30 years of experience in the integrated business services industry. Updater Services Ltd has since grown to become one of the leading providers of business services in India, with 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.
For FY22, the firm reported revenue of ₹1,483.55 crore as against ₹1,210.03 crore in FY21. Net profit for the period stood at ₹57.4 crore as against ₹47.5 crore last year.
Equity shares of the company will be listed on the BSE and the NSE.
IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd, are the book running lead managers to the issue, and the registrar is Link Intime India Private Ltd.
