Last Updated on October 18, 2023 by BFSLTeam BFSLTeam
Updater Services Limited is a Chennai-based integrated business service platform operating since 1990. The company is one of the leading providers of integrated business support and facilities management services in India. After receiving approval from SEBI, Updater Services Limited is all set to launch its upcoming IPO on September 25, 2023. The price band of this IPO has been fixed at Rs. 280 to Rs. 300 per share while the minimum lot size is 50 equity shares. 10% of the total offer is reserved for retail investors. This blog gives you a detailed overview of the upcoming Updater Services Limited IPO. Therefore, keep reading!
Table of Content
IPO Details
Updater Services Limited is planning to go public with its upcoming IPO on September 25, 2023. The company is launching a book-built IPO. This means Updater Services Limited will accept bids for its upcoming IPO at par or above the floor price of its equity shares.
The table below highlights the essential details about the upcoming Updater Services Limited IPO:
| IPO Open Date | September 25, 2023 |
| IPO Close Date | September 27, 2023 |
| Issue Type | Book built Issue |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 280 to Rs. 300 per equity share |
| Minimum Lot Size | 50 equity shares per lot |
| Fresh Issue | Equity shares worth up to Rs. 400 crore |
| Offer for Sale | 13,300,000 equity shares |
| Listed on | BSE and NSE |
About the Company
Updater Services Limited started its operation in 1990 as a small-scale housekeeping and catering company in Chennai. The company was founded by Raghunandana Tangirala who holds 30 years of experience in the integrated business service industry.
Updater Services Limited is a prominent, focused and integrated business services platform in India. This company provides business support services and integrated facilities management to its clients across the country.
Over time, the company has shifted and evolved into an integrated business service platform to become what it is today. Its portfolio of services has evolved to meet the necessities of diverse customer segments across different sectors. These include manufacturing, FMCG, IT and ITeS, airports, ports, engineering, banking, warehousing, logistics and automobiles, among others.
Updater Services Ltd aims to provide customised services that would suit the specific needs of its customers across various business sectors. By doing so, this company strengthens its bond and deepens its business relationship with customers. As per its DRHP, Updater Services Limited has served 2,589 customers across various sectors.
Its long list of customers includes big names like SBI Insurance Company Limited, IIFL Finance Limited, Mindtree Limited, TCS, Hyundai Motor Limited, Microsoft, Saint Gobain and Aditya Birla Fashion and Retail.
Owing to its pan-India presence, Updater Services Limited can hire, train and deploy employees across the country. This gives the company the capability to deliver premium services and satisfy customer needs enabling them to retain clients for a long period.
IPO Tentative Timeline
According to its RHP, Updater Services is planning to launch its upcoming IPO on September 25, 2023. The closing date of this IPO is September 27, 2023.
The following table carries the tentative timeline for Updater Services Limited IPO:
| Anchor Allocation Date | September 22, 2023, Friday |
| IPO Open Date | September 25, 2023, Monday |
| IPO Close Date | September 27, 2023, Wednesday |
| Cut-off time for UPI mandate confirmation | September 27, 2023, 5 p.m. |
| Basis of Allotment | October 4, 2023, Wednesday |
| Initiation of Refunds | October 5, 2023, Thursday |
| Credit of Shares to accounts | October 6, 2023, Friday |
| Listing Date | October 9, 2023, Monday |
IPO Lot Size
The minimum lot size for the upcoming Updater Services Limited IPO is 50. This means you can buy a minimum of 50 equity shares as a retail investor and in multiples of 50 thereafter.
The table below depicts the minimum and maximum lot sizes and amounts retail investors and HNIs must pay.
| Applications | Lots | Shares | Amount |
| Retail (min) | 1 | 50 | Rs. 15,000 |
| Retail (max) | 13 | 650 | Rs. 1,95,000 |
| S-HNI (min) | 14 | 700 | Rs. 2,10,000 |
| S-HNI (max) | 66 | 3300 | Rs. 9,90,000 |
| B-HNI (min) | 67 | 3350 | Rs. 10,05,000 |
Company Financials
Let’s take a look at the financial metrics of Updated Services Limited to learn about its current standing.
| Particulars | For the Financial Year Ending (in Rs. Million) | ||
| March 31, 2022 | March 31, 2021 | March 31, 2020 | |
| Total Assets | 8,745.66 | 5,794.94 | 6,046.30 |
| Total Liabilities | 5,288.30 | 2,873.03 | 3,607.53 |
| Total Expenses | 14,269.52 | 11,619.25 | 12,801.24 |
| Total Revenue | 14,978.93 | 12,163.51 | 13,167.81 |
| Profit After Tax | 573.69 | 475.61 | 330.78 |
| EBITDA | 865.37 | 702.24 | 597.96 |
Additional Read: IPO investment strategy: Tips for investing in an IPO
Strengths
Following are some of the important strengths of Updater Services Limited to consider whether to invest in its upcoming IPO.
- Updater Services Limited is a leading business services platform in India that has a diverse portfolio of customers.
- The company has an impressive track record of acquisition and integration of prominent businesses as customers.
- Updater Services Limited holds a record of a strong and long-term relationship with customers that highlights its customer retention skills and emphasises the customers’ brand loyalty.
- This company hosts a pan-India presence along with an efficient workforce and excellent recruitment qualities.
- Technology plays an important role in the company’s current and future business.
- The company is run by a professional and experienced management team supported by large PE investors.
Risks
Other than the above strengths, you also need to be aware of risks that can pose a threat to Updater Services Limited’s business. This can help you make an informed investment decision. These are:
- The business of Updater Services Limited can be adversely affected by operation-related risk. Failure to manage such risks such as defects, errors or disruption of services can hamper its business relationships with customers
- The company has a large workforce operating on a pan-India level. Any problem arising from service-related claims and employee disruption can adversely affect the workforce.
- Failure from the company’s end to acquire new customers or discontinuation of existing customer contracts can harm the operation and cash flow of Updater Services Limited’s business.
Additional Read: Risk of investing in IPO
Summary
Updater Services is a leading integrated facilities management company that plans to go public on 25 September. If you are interested in this company, make sure to go through the above sections.
Browsing through the DRHP thoroughly will also help you analyse whether the company’s plan aligns with your investment goals. You must keep in mind your risk appetite before investing in Updater Services Limited IPO.
Frequently Asked Questions
Raghunandana Tangirala is the founder of Updater Services Limited.
The price band for upcoming Updater Services Limited IPO shares is Rs. 280 to Rs. 300.
The face value of shares of Updater Services Limited IPO is Rs. 10 per share.
Motilal Oswal Investment Advisors Limited, IIFL Securities Limited and SBI Capital Markets Limited are the book-running lead managers (BRLM) of Updater Services Limited.
