Updater Services IPO booked 48% on Day 3 so far; bidding closes today

The Rs 640-crore IPO of Updated Services continued to witness a dud response from the investors during the third and final day of the bidding process.

According to the data, the investors made bids for 57,53,750 equity shares, or 48 per cent, compared to the 1,19,99,999 equity shares offered for the subscription by 1.00 pm on Wednesday, September 27. The issue which had opened for bidding on Monday, will close for subscription on today.

Updater Services is offering 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 thereafter. Of the Rs 640 crore block, the IPO includes a fresh share sale for up to Rs 400 crore, while and remaining 240 crore is an offer-for-sale (OFS) of up to 80 lakh shares worth Rs 240 crore by its existing shareholders and promoters.

The allocation for retail investors was booked at 96 per cent, while the portion for non-institutional investors (NIIs) fetched 34 per cent subscription. On the other hand, the quota for qualified institutional bidders (QIBs) attracted 57 per cent bids as of the same time.

Updater Services offers facility management services and business support services and operates in the B2B services space. Incorporated in 1990, the company 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.

Ahead of its IPO, Updater Services raised Rs 288 crore from 18 anchor investors as it issued 96 lakh equity shares at a price of Rs 300 per share. The issue is being managed by IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets, whereas Link Intime India is the registrar for the IPO.

Brokerage firms, tracking the issue, have a mixed view on Updater Services but mostly are positive in the long term. "The company has aimed for high margin through value-added services with the support of the latest technology in its portfolio. On the valuation front, we believe that the company is fairly priced," said Anand Rathi Research with a 'subscribe for long term' rating.

Canara Bank Securities said that the company is also looking to pursue inorganic growth through acquisition of high margin businesses with expansion of standalone margin. "However, the company looks expensive vis a vis its peers in terms of valuation," it added with a subscribed for long term rating. Swastika Investmart has suggested to avoid the issue.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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