Updater Services Limited

About Updater Services Limited IPO

Incorporated in 2003, Updater Services offers integrated facilities management (IFM) and business support services (BSS). It is the second largest player in the IFM market in India, with a market share of 19% in FY23. Its subsidiaries like Matrix, Denave and Avon are also market leaders with a share of 5%, 20% and 11% respectively. 

The company operates in the business-to-business (B2B) space. It provides services like production support, engineering, washroom and feminine hygiene, housekeeping, pest control. As part of business support, the company offers sales enablement services, employee background verification, audit and assurance, airport ground handling and more. 

As of 30 June 2023, the company offered services to more than 11 sectors and served 2,797 clients. Some of its marquee global and Indian customers include P&G, Aditya Birla Fashion and Retail, Microsoft, Hyundai Motor India, Saint-Gobain India, Tata Consultancy Services, LTIMindtree, Honda Motorcycle and Scooter India, IIFL, SBI and more.  

The company has a widespread network of 4,331 locations managed from 129 points of presence with 116 offices in India and 13 overseas. It has also acquired various businesses such as Avon, Global Flight Handling, Matrix, Washroom Hygiene Concept, Denave and Athena. 

The company has seen a CAGR rise of 20% in its revenue from contracts with customers. Between FY18 and FY23, India’s IFM market grew at a CAGR of 9% and is expected to witness growth momentum in the next five years, which could benefit the company. 

And now, Updater Services Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings, fund capital expenditure, pursue inorganic initiatives and for general corporate purposes. Its shares will be listed on the NSE and the BSE.

Here are key details about the Updater Services IPO:

Financial snapshot

A quick look at Updater Services Limited IPO’s strengths, risks and threats

Strengths 

1. Leading integrated business services platform, operating across diverse segments with an experience of more than 30 years. 
2. Long standing relationship with customers, for more than 10 years with some customers such as Hyundai, Saint-Gobain and P&G as on 30 June 2023. 
3. Pan India presence with offices spread across 25 states in India and an employee count of 65,627 employees as on 30 June 2023.
4. Uses technology in core areas such as Systems Applications and Products in Data Processing (SAP) Computerised Maintenance Management System (CMMS) and Enterprise Asset Management (EAM) among others. 

Risks and threats

1. Faces significant employee related risks and had an attrition rate of 77%, 65% and 77%  in FY21, FY22 and FY23, respectively. 
2. Witnessed a reduction in its profit in FY23 compared to the two fiscals before that.  
3. Trade receivables constitute a significant portion of its total assets and accounted for ₹427 crore as on 31 March 2023. 
4. Requires a significant amount of working capital and its total outstanding borrowing stood at ₹194 crore as of 31 July 2023.
5. Has experienced negative cash flows from investing activities in the last three years. 
6. Faces competition from BVG, Quess Corp, SIS Limited, Sodexo and ISS Facility Services. 

Updater Services Limited IPO details

| Updater Services Limited IPO date

According to the offer document filed by the company with the SEBI, the Updater Services IPO’s opening date – in other words, the Updater Services IPO launch date – will be 25th September 2023. The Updater Services IPO closing date is 27th September 2023. After this, investors will be updated about the allotment status on 4th October 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 6th October 2023. The Updater Services IPO listing date is 9th October 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Updater Services Limited IPO price band

The IPO is an offer for sale as well as a fresh issue. The Updater Services IPO price band has been set between ₹280 and ₹300 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Updater Services IPO listing price will be determined on 9th October 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Updater Services Limited IPO lot size 

The Updater Services IPO details have been declared. The Updater Services IPO lot size is set at 50 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Updater Services IPO issue size is approx ₹640 crore. 

How to pre-apply for the Updater Services Limited IPO?

You can pre-apply for the Updater Services Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Updater Services Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Updater Services Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Updater Services Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Updater Services Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘ Updater Services Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Updater Services Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Updater Services Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Updater Services Limited IPO allotment status will be mentioned

Open a demat account with Upstox to apply for the Updater Services Limited IPO

To apply for the Updater Services Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Upstox – trading app to apply for the Updater Services Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. 

You can apply for the Updater Services Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. 

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.