Updater Services IPO: Updater Services Limited (UDS), a leading facility management services provider, has announced its initial public offering scheduled to run from 25 September to 27 September 2023.
The IPO is currently forthcoming and has generated considerable interest among investors. You can pre-apply for the Updater Services IPO on Upstox. which means the pre-apply open date, usually begins a day before the IPO opens for the subscription.
Updater Services IPO
Updater Services has listed its symbol as UDS for the IPO. The company aims to raise up to Rs 4,000 million through the sale of equity shares, each with a face value of Rs 10. The IPO also includes an offer for sale of up to 8,000,000 equity shares, with a special allocation of 9,600,000 shares for anchor investors.
The IPO is structured as a 100% book-building issue with a price range of Rs. 280 to Rs. 300 per equity share. Investors can place their bids in lots of 50 equity shares and multiples thereof. The minimum order quantity has been set at 50 equity shares, while retail investors can bid for shares up to a maximum amount of Rs. 2,00,000.
In addition, qualified institutional buyers (QIBs) have the option of bidding for a maximum of 11,999,950 equity shares, calculated at the lower price band. Similarly, non-institutional buyers (NIBs) can go for up to 5,571,400 equity shares, calculated at the lower price band. Both these categories must adhere to the rule of 50 equity shares and multiples thereof.
Leading the IPO as book-running lead managers are IIFL Securities Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited. HDFC Bank Limited and ICICI Bank Limited have been designated as the sponsor banks for the issue.
Updater Services IPO Details
|IPO Size||₹ 640 Cr|
|IPO Price Range||₹ 280 to ₹ 300|
|Min Investment||₹ 14,000|
|Listing Exchange||BSE, NSE|
|Basis of Allotment||04-Oct-23|
|Credit to Demat Account||06-Oct-23|
Apply for the Updater Services IPO
You can pre-apply for the Updater Services IPO on Upstox. Follow these steps to pre-apply for the IPO:
- Click on the “Open an Account“
- Fill in the required details
- Complete the verifying your identity
- Login to Your Account
- in the IPO section, click the ‘Updater Services IPO’ tab
- fill in the required information, like ‘bid price’ and ‘lot size’
- Confirm and click on ‘Pre-Apply’
Updater Services IPO GMP Status
Updater Services is open from September 25 to 27 September 2023 and people’s eyes have been on the grey market premium (GMP) to gauge investor sentiment. GMP is the rate at which the IPO shares are traded in the grey market before they get listed on the stock exchange. It’s an unofficial way of measuring the market’s sentiment about the IPO.
|GMP Date||IPO Price||GMP||Sub2 Sauda Rate||Estimated Listing Price|
According to the most recent data available as of 25 September 2023, the GMP for Updater Services remains flat at ₹0. The IPO price has been set at ₹300. Interestingly, this no-change status in GMP has been consistent for the past five days. In what can be described as a lackluster performance, the Sub2 Sauda Rate and the Estimated Listing Price have also remained stable. The estimated listing price has been calculated to be ₹300, showing a zero percent change.
On 24 September 2023, the scenario was exactly the same. The GMP did not show any movement, and the IPO price was maintained at ₹300. Even the last updated figures on the evening of 24 September 2023 did not reflect any change.
This static trend was not only confined to this date but also persisted on 23 September 2023. Updater Services seemed to continue its run of monotony, or stability, depending on one’s perspective, with its GMP, Sub2 Sauda Rate, and estimated listing price all remaining at a constant level.
Delving back another day to 22 September 2023, one finds the same picture. It is perhaps not surprising at this point that the GMP showed no signs of movement. The IPO price was again listed at ₹300, and the estimated listing price hovered at the same figure.
About Updater Services
Updater Services Limited is a leading business services platform in India that offers a range of services to its customers. The company provides sales enablement services to 285 customers across various industries such as global technology, IT and electronics, FMCG, and more.
Its major customers include Microsoft, Saint-Gobain, Hindustan Unilever Limited, Marg Business Transformation Private Limited, Vivo Mobile India Private Limited, Logitech, and Culturelytics Private Limited.
Updater Services also offers employee background verification check services through its subsidiary Matrix, which is the third-largest company in India in this segment, with a share of 5.4% in the financial year ended March 31, 2023, according to a Frost & Sullivan report.
In addition, the company is amongst the top five players in India in the hard services market, offering operations and maintenance services for central utilities, heating, ventilation, air conditioning equipment, and fire safety systems to its customers.
Updater Services aims to introduce new products and services to fill gaps in its current portfolio or to enter new segments that it sees as potentially large and margin accretive.
The company’s strong business development team, comprising 70 experienced individuals, has been instrumental in acquiring new customers across its business segments. Updater Services’ Restated Consolidated Financial Information for the financial years ended March 31, 2021, March 31, 2022, and March 31, 2023, shows a steady growth trajectory, with consolidated revenue increasing from INR 1,064.5 million in FY21 to INR 1,423.5 million in FY23.
Updater Services IPO allotment status
When the allotment process is completed, you can check the status of your application on the Upstox. how to check the Updater Services IPO allotment status:
- Login to your Upstox Account
- find the ‘Invest in IPO’ section.
- Click on the ‘View all option
- Click on My applications
- under the History section
- your Updater Services IPO allotment status will be mentioned.
|QIB Shares Offered||75.00%|
|NII (HNI) Shares Offered||15.00%|
|Retail Shares Offered||10.00%|
Updater Services IPO Buy or Not
Let’s delve into the financials to get a clearer picture start with the company’s total assets, which have shown a consistent upward trend over the past three fiscal years. The assets stood at Rs 579.49 crores in FY21, rose to Rs 874.57 crores in FY22, and have further increased to Rs 1216.94 crores in FY23. This showcases a robust growth trajectory, which is generally a positive indicator for prospective investors.
However, the company’s total borrowings have also witnessed a similar upward trajectory, from Rs 287.30 crores in FY21 to Rs 528.83 crores in FY22, and reaching Rs 829.13 crores in FY23. This could raise concerns about the company’s increasing debt load, which is often seen as a financial risk. It is important to weigh this against the asset growth to understand the complete financial picture.
Turning to cash flows, the net cash generated from operating activities was Rs 128.49 crores in FY21, slightly dipping to Rs 31.06 crores in FY22, but rebounded to Rs 114.78 crores in FY23. Positive cash flow from operations indicates that the company is generating sufficient revenue to maintain and grow its operations, another encouraging sign for potential investors.
Investing activities have resulted in negative cash flow, which is not uncommon for growing companies investing in assets. Financing activities have also shown positive cash flows in recent years, which can be seen as the company effectively managing its financial structure.
Updater Services IPO price?
– The Updater Services IPO price band from ₹ 280 to ₹ 300 per equity share.
Updater Services IPO date?
– The public issue opened on 25 September 2023 and will close on 27 September 2023.
Updater Services IPO lot size?
– The lot size for the Updater Services IPO is 50 equity shares.
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it’s important to note that GMP is not an official measure and often varies. It provides an early indicator of potential demand but does not guarantee the actual listing price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Sharedhan. We advise investors to check with certified experts before making any investment decisions.