Updater Services raises Rs 288 crore via anchor book, a day before issue opening

Updater Services IPO will open on September 25

Facility management services company Updater Services has mobilised Rs 288 crore via anchor book, a part of qualified institutional buyers (QIB), on September 22, ahead of issue opening.

".... has finalised allocation of 96 lakh equity shares to anchor investors, at a price of Rs 300 per share, the company said in its filing to exchanges.

Total 18 investors participated in the anchor book including marquee names like Societe Generale, Copthall Mauritius Investment, Citigroup Global, BNP Paribas Arbitrage - ODI and Nomura Singapore.

Domestic participants also invested in the company including ICICI Prudential Mutual Fund, Franklin India, Aditya Birla Sun Life Insurance, Bandhan Mutual Fund, Motilal Oswal, and 360 One Special Opportunities Fund, via anchor book.

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"Out of total allocation to anchor investors, 36,66,750 equity shares were allocated to three domestic mutual funds through a total of six schemes," Updater Services said.

The Mumbai-based company will open its Rs 640-crore public issue for subscription on September 25, with a price band at Rs 280-300 a share.

The initial public offering comprises a fresh issue of shares worth Rs 400 crore and an offer-for-sale (OFS) of 80 lakh shares worth Rs 240 crore, by three shareholders including promoter Tangi Facility Solutions.

Investors India Business Excellence Funds II & IIA will be selling total 40 lakh shares in the OFS.

The offer will be closing on September 27.

The repaying debt amounting to Rs 133 crore, working capital requirements of Rs 115 crore, and inorganic initiatives at a cost of Rs 80 crore will be done through net fresh issue proceeds. The remaining fresh issue money will be used for general corporate purposes.

Also read: JSW Infrastructure mops up Rs 1,260 crore from 65 anchor investors, ahead of IPO

Updater Services, the second-largest player in the integrated facilities management market in India, has registered net profit at Rs 34.6 crore for the year ended March FY23, which fell nearly 40 percent compared to the previous financial year, impacted by weak operating performance. However, the revenue (including finance income) increased by 41.3 percent to Rs 2,104.9 crore during the same period.