© Reuters.

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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