Shares of Updater Services, led by Raghunandana Tangirala, listed at a discount on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Wednesday. The shares were listed at ₹285 on NSE and ₹299.9 on BSE, falling short of the initial public offering (IPO) price of ₹300.

Despite being the second-largest player in India’s integrated facilities management market, the company’s financial performance has been erratic. In fact, the net profit for fiscal year 2023 dropped to ₹34.6 crore from the previous higher figures.

The September 2023 IPO saw a fresh issue of ₹400 crore and an offer for sale (OFS) of ₹240 crore. The total subscription was 2.96 times with non-institutional investors at 0.89 times, Qualified Institutional Buyers (QIB) category at 4.50 times, and retail individual investors (RIIs) quota at 1.45 times.

Updater Services raised a total of ₹640 crore (INR100 crore = approx. USD12 million) through its IPO, with promoter Tangi Facility Solutions participating in the offer-for-sale. The proceeds will be used to address debt repayment, fund inorganic initiatives, meet working capital needs, and serve general corporate purposes.

Despite the subdued market response, Updater Services reported a significant FY23 revenue of ₹2,098.9 crore and was listed under the T+3 regime.

The IPO process was managed by IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd, with Link Intime India Private Ltd serving as the registrar.

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