What you must know about Updater Services IPO?
by 5paisa Research Team
21 Sep 2023
Updater Services IPO Details
- Open Date 25-Sep-23
- Close Date 27-Sep-23
- Lot Size 50
- IPO Size ₹ 640 Cr
- IPO Price Range ₹ 280 to ₹ 300
- Min Investment ₹ 14000
- Listing Exchange BSE, NSE
- Basis of Allotment 04-Oct-23
- Refunds 05-Oct-23
- Credit to Demat Account 06-Oct-23
- Listing Date 09-Oct-23
Updater Services IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 25-Sep-23 | 0.00 | 0.01 | 0.32 | 0.06 |
| 26-Sep-23 | 0.00 | 0.12 | 0.72 | 0.17 |
| 27-Sep-23 | 4.50 | 0.89 | 1.45 | 2.96 |
Updater Services IPO Synopsis
Updater Services Limited IPO is all set to open from 25th September to 27th September 2023. The company is involved in the business of providing facility management services and business support services ("BSS"). The IPO includes a fresh issue of 13,333,333 equity shares worth ₹400.00 cr. and an Offer-for-Sale (OFS) of 8,000,000 equity shares worth ₹240.00 cr. The total size of the IPO is ₹640 cr. The share allotment date is 4th October, and the IPO will be listed on 9th October on the stock exchanges. The price band is ₹280 to ₹ 300 per share and the lot size is 50 shares.
IIFL Securities Ltd, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book-running lead managers for this IPO, while Link Intime India Private Ltd is the registrar.
Objectives of Updater Services IPO:
● To repay or prepay the outstanding borrowings obtained by the company.
● To meet working capital requirements.
● To pursue inorganic initiatives
● Fund general corporate purposes.
Updater Services IPO Video:
About Updater Services
Established in 1990, Updater Services Limited is involved in the business of providing facility management services and business support services ("BSS"). The company operates in the Business-to-Business (B2B) services sector, providing a range of business services that can be categorized into two main segments:
i) IFM & Other Services Segment: This includes services such as Production Support, Soft Services, Engineering Services, Washroom and Feminine Hygiene management, Warehouse management, General Staffing, and more.
ii) BSS Segment: In this segment, the company offers Audit and Assurance services through its subsidiary, Matrix. Additionally, UDS provides services like employee background verification checks, airport ground handling, sales enablement, and more through its subsidiary companies.
As of June 30, 2023, Updater Services has served a total of 2,797 customers across various sectors, including both global and Indian clients such as Procter & Gamble Home Products Limited (P&G), Aditya Birla Fashion and Retail Limited (ABFRL), Microsoft, Hyundai Motor India Limited (Hyundai), Saint-Gobain India Private Limited, among others.
Updater Services Limited has a PAN India presence with an extensive network consisting of 4,331 locations (excluding staffing sites) that are managed from 129 points of presence. This network is supported by 116 offices in India and an additional 13 offices located overseas, as of June 30, 2023.
Peer Comparison
● Quess Corp Limited
● SIS Limited
● TeamLease Services Limited
For More Information:
Webstory on Updater Services IPO
Updater Services Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue | 2098.89 | 1483.55 | 1210.03 |
| EBITDA | 99.77 | 86.53 | 70.22 |
| PAT | 34.60 | 57.36 | 47.56 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 1216.94 | 874.57 | 579.49 |
| Share Capital | 52.95 | 52.81 | 52.81 |
| Total Borrowings | 829.13 | 528.83 | 287.30 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 114.78 | 31.06 | 128.49 |
| Net cash from / (used in) investing activities | -152.98 | -47.15 | -16.54 |
| Net cash flow from / (used in) financing activities | 95.58 | 28.79 | -84.66 |
| Net increase (decrease) in cash and cash equivalents | 57.38 | 12.70 | 27.28 |
Updater Services IPO Key Points
-
Strengths
1. The company is a leading integrated business services platform, operating across diverse segments.
2. It has long standing relationships with customers across diverse sectors leading to recurring business.
3. The company has a track record of successful acquisition and integration of high-margin business segments..
4. It has a PAN India presence with a large and efficient workforce coupled with strong recruitment capabilities.
5. Technology at the forefront of the current and future business.
6. Highly experienced Management team with support from PE Investors.
-
Risks
1. The company faces operational risks due to providing services in different business environments.
2. Decreased profit in FY23 compared to past years.
3. Financing agreements contain covenants that limit the flexibility in operating the business.
4. Higher working capital requirements.
5. Negative cash flows from investing and financing activities in previous years.
6. Operates in an intensely competitive that has low entry barriers.
7. A significant portion of the revenues are derived from a few geographical regions.
8. The company has received and may in the future receive anonymous whistle-blower complaints, which may adversely affect its reputation and business.
Updater Services
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Updater Services IPO FAQs
What is the minimum lot size and investment required for the Updater Services IPO?
The minimum lot size of Updater Services IPO is 50 shares and the investment required is ₹14,000.
What is the price band of Updater Services IPO?
The price band of Updater Services IPO is ₹280 to ₹ 300.
When does the Updater Services IPO opens and closes?
Updater Services IPO is open from 25th September to 27th September 2023.
What is the size of the Updater Services IPO?
The size of Updater Services IPO is ₹640 cr, which includes a fresh issue of 13,333,333 equity shares worth ₹400.00 cr. and an Offer-for-Sale (OFS) of 8,000,000 equity shares worth ₹240.00 cr.
What is the allotment date of the Updater Services IPO?
The share allotment date of Updater Services IPO is 4th of October 2023.
What is the Updater Services IPO listing date?
The Updater Services IPO will be listed on 9th of October 2023.
Who are the book runners for the Updater Services IPO?
IIFL Securities Ltd, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book-running lead managers for Updater Services IPO.
What is the objective of the Updater Services IPO?
Updater Services plans to utilize the raised capital from IPO to:
1. To repay or prepay the outstanding borrowings obtained by the company.
2. To meet working capital requirements.
3. To pursue inorganic initiatives
4. Fund general corporate purposes.
How to apply for the Updater Services IPO?
To apply for Updater Services IPO, follow the steps given below:
● Login to your 5paisa account and select the issue in the current IPO section
● Enter the number of lots and the price at which you wish to apply for the Updater Services IPO.
● Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.
● You will receive a mandate notification to block funds in your UPI app.
Contact Details of Updater Services IPO
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/
Updater Services IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: uds.ipo@linkintime.co.in
Website: https://linkintime.co.in/mipo/ipoallotment.html
Updater Services IPO Lead Manager
IIFL Securities Ltd
Motilal Oswal Investment Advisors Limited
SBI Capital Markets Limited
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