Updater Services listing: Lacklustre Start! Updater Services shares list at 5% discount to issue price on NSE

Shares of Updater Services debuted at Rs 285 on NSE on Wednesday, a discount of 5% to the IPO issue price of Rs 300. Meanwhile, on BSE, the stock was listed in line with the IPO price at Rs Rs 299.9.

Ahead of the listing, the company’s shares traded flat in the unlisted market.

The Rs 640-crore IPO of Updater Services was subscribed 2.9 times overall at close. The issue comprised fresh equity of Rs 400 crore and an offer for sale (OFS) of 80 lakh shares by promoter and other selling shareholders.

The company priced the IPO in the range of Rs 280-300 per share. Ahead of the issue launch, it raised about Rs 288 crore from anchor investors.

“Though the company is a leading player in the integrated facilities management (IFM) market in India, we believe that the issue is aggressively priced and factors in most of the positives of the company,” said Shreyansh Shah, Research Analyst, StoxBox.

Updater Services is a leading integrated facilities management services and business support services provider to their customers, with a pan-India presence.

Its portfolio of services evolved over the years to cater to diverse customer segments across sectors including FMCG, manufacturing and engineering, BFSI, healthcare, IT / IteS, automobiles, logistics and warehousing, airports, ports, infrastructure and retail, among others.The company also offers employee background verification check services through Matrix, which is the third largest company in this segment with a share of 5.4% in FY23.

Net proceeds will be used towards funding working capital requirements, repayment of debt, pursuing inorganic initiatives and other general corporate purposes.

Its revenue from operations jumped 42% year-on-year to Rs 2,099 crore for the year ended March 2023. In the same period, net profit fell 39% to Rs 34.6 crore.

IIFL Securities, Motilal Oswal and SBI Capital Markets acted as the book-running lead managers to the issue, and Link Intime India was the registrar.

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