Key Points of Updater Services IPO With SEBI:
- Updater Services Ltd has submitted a preliminary red herring prospectus to the Securities Exchange Board of India to secure funds through an IPO.
- The IPO will include a fresh issue of Rs 400 crore and an offer for sale of up to 13.30 million shares by current shareholders and promoters.
- The company plans to utilize Rs 133 crore of the fresh issuance proceeds to repay debt and Rs 115 crore to cover working capital requirements.
- Updater Services Ltd is a leading integrated business services platform in India, providing comprehensive IFM services and BSS to clients across the country.
- The company is the second largest player in the IFM market in India and offers Audit and Assurance services and employee background verification check services through its subsidiary, Matrix.
- The lead managers to the IPO issue are IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.
- Updater Services Ltd intends to allocate Rs 80 crore of the fresh issue towards pursuing inorganic initiatives to expand its operations.
Details of Updater Services IPO With SEBI:
Updater Services Ltd has taken a step towards securing funds through an initial public offering (IPO) by submitting a preliminary red herring prospectus to the Securities Exchange Board of India. The IPO will comprise a fresh issue of Rs 400 crore, with an offer for sale of up to 13.30 million shares by current shareholders and promoters.
The offer for sale will include up to 6.65 million shares by Tangi Facility Solutions Pvt Ltd, up to 1.33 million shares by India Business Excellence Fund – II, and up to 5.32 million shares by India Business Excellence Fund – IIA.
The fresh issuance proceeds of Rs 133 crore will be utilized to repay debt, as Updater Services Ltd had a consolidated borrowing of Rs 194.17 crore as of December 2022. Additionally, Rs 115 crore will be utilized to cover working capital requirements, as the company had a consolidated outstanding indebtedness of Rs 134.48 crore with respect to working capital facilities as of December 2022.
Updater Services Ltd is a leading integrated business services platform in India, providing comprehensive Integrated Facilities Management (IFM) services and Business Support Services (BSS) to clients across the country. It is the second largest player in the IFM market in India, with a vast service offering that distinguishes it in the industry. The company’s subsidiary, Matrix, is a leading dealer/distributor audits and retail audits provider that offers Audit and Assurance services, and employee background verification check services.
In addition, Updater Services Ltd provides sales enablement services through its subsidiaries, Denave and Athena, and is a market leader in India’s mailroom management services through its subsidiary, Avon. The lead managers to the IPO issue are IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.
For the financial year 2022, the company reported revenue of Rs 1483.55 crore compared to Rs 1210.03 crore in the previous year. The net profit for the period was Rs 57.37 crore, up from Rs 47.56 crore last year, while the EBITDA margin remained flat at 5.8 percent from 5.78 percent in the previous year.
With an aim to expand its operations, Updater Services Ltd intends to allocate Rs 80 crore of the fresh issue towards pursuing inorganic initiatives. The company’s strong financials and vast service offering have placed it at the forefront of the Indian market, and the IPO will provide an opportunity for investors to participate in the company’s growth.
About Updater Services:
Updater Services specializes in providing a wide range of property management services, including housekeeping, pest control, garden and lawn maintenance, security, business support, food and beverage vending, office administration, staffing, plumbing, water, payroll, and warehouse management services.
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