Facility management services company Updater Services disappointed investors on the listing day as the stock settled with more than 5 percent loss on October 4 due to tepid response to its IPO and weak equity market conditions.
The stock started off the day at Rs 285, down 5 percent compared to issue price of Rs 300 and remained under pressure throughout session with hitting day's low of Rs 282 and high of Rs 298.65 on the NSE.
Finally, it closed 5.37 percent lower at Rs 283.90, with volume of 22.98 lakh shares and the market capitalisation of Rs 1,893 crore, while the closing on the BSE was Rs 283.85, with volume of 1.86 lakh shares.
Updater Services made its debut in the T+3 timeline, becoming seventh company listing in the new timeline instead of old T+6 timeline which is valid till November 30.
The business support services company has raised Rs 640 crore through its public issue which was subscribed 2.9 times during September 25-27. The price band for the offer was Rs 280-300 per share.
The fresh issue component in the offer was Rs 400 crore, and an offer-for-sale of Rs 240 crore by selling shareholders.
The company will make use of Rs 133 crore for debt reduction, and will spend Rs 115 crore for working capital requirements. Further, the inorganic initiatives at a cost of Rs 80 crore will also be funded via fresh issue money. And the remaining funds will be used for general corporate purposes.
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