- Date : 21/09/2023
- Read: 3 mins
India’s second-largest integrated service player, Updater Services issues its IPO with a fresh issuance worth INR 400 crore. Learn more about the company here.
Established as a corporation in 1990, Updater Services, a Chennai-based integrated services player in India, is all set to launch its IPO on September 25. They offer integrated facilities management (“IFM”) services and business support services (“BSS”) all over India. Within the Indian IFM market, they are the second largest presence.
Their service offerings are, however, the most varied, making them stand out from the crowd. They cover a broad base of sectors including but not limited to FMCG, manufacturing and engineering, financial services and insurance (“BFSI”), healthcare, information technology/information technology-enabled services (“IT / ITeS”), automobiles, logistics and warehousing, airports, ports, infrastructure, banking, etc.
Updater Services is offering a fresh issuance of shares worth INR 400 Cr.
They are providing an offer-for-sale of 80 lakh equity shares
Half of the shares will be sold by Promoter Tangi Facility Solutions and the other half will be sold by Business Excellence Fund – II and IIA
The revenue operations of the company went up by 42% year-on-year to INR 2099 Cr in FY23
The net profit in FY23 fell by 39% to INR 34.6 Cr.
Objectives of the IPO
The following are the objectives of the issuance:
Repayment of loans and borrowings
Delving into inorganic initiatives
Raising working capital
General corporate purposes
Updater Services IPO Details
Updater Services IPO reservation details
Strengths of the IPO
The following are some of Updater Services’ strengths:
They have increased profits by 73.53% from FY20 to FY22
As of December 2022, the company had served around 2500 customers, including big players like Tata, Procter & Gamble, Aditya Birla Fashion and Retail, SBI Life Insurance, Microsoft, Honda, Sony, etc.
Weaknesses of the IPO
The following are some of Updater Services’ weaknesses:
High dependency on manpower can lead to decreased productivity if the company is unable to retain a good amount of skilled workforce
The company, its directors and promoters have criminal and tax-related legal proceedings against them.
List of Sellers
Among those selling shares are promoters, including Raghunandana Tangirala, Shanthi Tangirala, and Tangi Facility Solutions Private Limited.
Also Read : IPO Exit Strategies
Click here for the latest articles on financial planning.