Updater Services shares disappoint at D-Street debut; list at 5% discount at Rs 285

Shares of Updater Services disappointed at its debut on Wednesday as the stock listed almost at Rs 285 apiece, a discount of 5 per cent on National Stock Exchange (NSE), compared to its issue price of Rs 300. However, the stock was listed almost at par on BSE, at Rs 299.90, signaling a marginal discount.

There was no buzz in the grey market regarding Updater Services IPO. The company did not command any premium in the unofficial market throughout its IPO process. Thus, it can be said that there was no euphoria or expectations of listing pop from the company on its debut.

Updater Services raised a total of Rs 640 crore from its primary stake sale as it sold its shares in the fixed price band of Rs 280-300 per share and with a lot size of 50 equity shares and its multiples. The IPO was open and could be subscribed by the investors between September 25 to September 27.

Of the block, the IPO included a fresh share sale for up to Rs 400 crore, while remaining 240 crore is an offer-for-sale (OFS) of up to 80 lakh shares. The issue was managed by IIFL Securities, Motilal Oswal Investment Advisors and SBI Capital Markets, while Link Intime India was the registrar for this IPO.

The issue was overall subscribed 2.96 times, which included 4.50 times subscription by the qualified institutional bidders (QIBs). The allocation for retail investors was subscribed 1.45 times, while the non-institutional investors portion was booked only 89 per cent during the three day bidding process.

Updater Services offers facility management services and business support services and operates majorly in the B2B services space. The company, which was incorporated in 1990, has served 2,797 customers across various sectors at domestic and global levels as of June 30, 2023, through a network of 4,331 locations through 116 offices in India and 13 offices overseas.

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