Motilal Oswal-backed Updater Services received the green signal from the capital markets regulator to go ahead with the planned IPO.
The initial public offering comprises a fresh issuance of shares worth Rs 400 crore, and an offer-for-sale of 1.09 crore equity shares by promoter and investors.
Tangi Facility Solutions, a part of promoter group, and Motilal Oswal-owned India Business Excellence Funds, will be offloading shares via OFS.
The OFS size has been reduced from 1.33 crore earlier, to 1.09 crore, as per the addendum to the DRHP filed with the Sebi on July 20, 2023
The Securities and Exchange Board of India (Sebi) has issued an observation letter on the IPO papers filed by the company on September 4. As per Sebi, the issuance of observation letter means the company can go ahead with its IPO plan.
The Chennai-based company filed a draft red herring prospectus with the regulator on March 29, 2023.
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Updater Services, with a pan-India presence, offers integrated facilities management (IFM) services and business support services (BSS) to clients. It claimed to be the second-largest player in the IFM market in India.
Within the business support services segment, it offers audit and assurance services through the subsidiary, Matrix. Further, it provides sales enablement services through subsidiaries Denave and Athena, while the company offers mailroom management services through subsidiary, Avon.
The net fresh issue proceeds will be utilised mainly for repaying debts amounting to Rs 133 crore, working capital requirements of Rs 115 crore, and inorganic initiatives at a cost of Rs 80 crore. The remaining funds will be used for general corporate purposes.
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Promoters hold 81.20 percent shareholding in the company and public shareholders including India Business Excellence Fund II, and India Business Excellence Fund II A own the remaining 18.80 percent shares.
IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets are the merchant bankers for the issue.
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