Updater Services set to launch IPO on September 25, targeting Rs 640 crore

Updater Services, a stalwart in the business-to-business (B2B) services sector since 1990, is preparing to open its initial public offering (IPO) for bidding on Monday, September 25. The three-day bidding process is scheduled to conclude on Wednesday, September 27. The company has fixed the price band for its shares at RS 280-300 ($1 = Rs 83.13) per equity share, with a minimum bid size of 50 equity shares and multiples allowed thereafter.

The company aims to raise approximately Rs 640 crore (Rs 1 crore = $120,289) from this primary offering. This includes a fresh share sale of Rs 400 crore and an offer for sale (OFS) of 8 million equity shares by Tangi Facility Solutions, the promoter, and selling investors India Business Excellence Fund. The OFS is expected to total Rs 240 crore. The anchor book will be opened on Friday.

Updater Services plans to use the net proceeds from the issue for a variety of purposes. These include repaying or prepaying certain borrowings, funding working capital requirements, pursuing inorganic initiatives, and general corporate activities. The proceeds from the OFS will go to the selling shareholders.

The company operates in two main segments: IFM&other services and BSS Segment. IFM&other services include soft services, engineering services, production support services, warehouse management, general staffing and more. The BSS segment provides audit and assurance services through its subsidiary Matrix.

As of June 30, Updater Services had a customer base of 2,797 across various sectors—both domestic and international—including Procter&Gamble (NYSE:PG) Home Products (P&G), Aditya Birla Fashion and Retail (ABFRL), Microsoft (NASDAQ:MSFT), Hyundai Motor (OTC:HYMTF) India, and Saint-Gobain India. The company’s network comprises 4,331 locations and 116 offices in India along with 13 overseas offices.

In the fiscal year ending March 31, the company posted a net profit of Rs 34.61 crore on revenue of Rs 2,112.09 crore. This was an increase from FY22, when the company reported a bottom line of Rs 57.37 crore on revenue of Rs 1,497.89 crore.

The offer structure reserves up to 75 percent for qualified institutional bidders, while non-institutional investors will receive 15 percent. Retail investors will be allocated the remaining 10 percent of the issue.

IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets are acting as book-running lead managers for the issue. Link Intime India has been appointed as the registrar to the issue. Updater Services' shares will be listed on both BSE and NSE mainboards.

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