Everything you need to know about Updater Services Limited IPO

About the company

Commencing operations in 1990, Updater Services Limited is a leading, focused, and integrated business services platform offering integrated facilities management (IFM) services and business support services (BSS) with a pan-India presence. They are the second largest player in the IFM market in India.

Their Business-to-Business (B2B) services are broadly classified into the two following segments:

  1. IFM & Other Services Segment; and 2. BSS Segment.

1. IFM & Other Services Segment:

Soft Services: include services such as housekeeping and cleaning services, disinfecting and sanitizing services, pest control, horticulture, and facade cleaning.

Production Support Services: solutions offered to manufacturing facilities including material handling, material movement, on-site warehouse management, stores and inventory management, production support activities, and equipment maintenance.

Engineering Services: These mainly comprise services related to mechanical, electrical, and plumbing (MEP). These services, also referred to as hard services, include maintenance, repair, overhaul, and performance management of heating, ventilation, and air conditioning.

Washroom and Feminine Hygiene Care Solutions: These include feminine hygiene care solutions and products and services such as air fresheners, sanitizers, and washroom solutions. Washroom and feminine hygiene care solutions are offered through their Subsidiary, Washroom Hygiene Concept.

Other services include Warehouse Management, General Staffing, Institutional Catering, etc.

2. BSS Segment:
Sales Enablement Services: These services are mainly provided through their Subsidiaries, Denave and Athena. Denave is a sales enablement B2B company focused on serving global customers across multiple industries including information technology/information technology-enabled services, telecom, and other industries, through global delivery centers located in India, Malaysia, and UK, and also through partners in other parts of the world.

Employee Background Verification Check Services: These services comprise address verification, identity verification, educational qualifications verification, employment history verification, and legal case history, among others. These services are offered through their Subsidiary, Matrix, which is the third largest company in India in the segment with a share of 5.4% in the Financial Year ended March 31, 2023.

Audit and Assurance Services: These services are offered through their Subsidiary Matrix and are provided to FMCG and consumer durables companies to ensure the integrity and performance of their distribution, channel, and retail management operations. We provide services such as supply chain audits including warehouse depot audits, distributer audits, and retail point audits, among others. We also provide back-office services related to marketing programs and channel partner claim processing to a global customer.

Airport Ground Handling Services: These services include baggage and cargo handling, passenger movement, and aircraft turnaround, among others. Ground handling is a critical activity at an airport and includes baggage and cargo loading and unloading, passenger movement, aircraft clean-ups, in-flight meals loading and unloading, aircraft marshaling, and ancillary support services to aircraft.

Mailroom Management and Niche Logistics Solutions: These services are mainly provided through their Subsidiary, Avon. Avon is a leading service provider in India and a pioneer in the mailroom and asset movement business. It is the market leader in India with a share of 11.1% in the mailroom management services market in the Financial Year ended March 31, 2023.

As of June 30, 2023, the Company’s 2,797 customers across various sectors, include certain marquee global and Indian customers such as P&G, ABFRL, Microsoft, Hyundai, Saint-Gobain, TCS, Mindtree, Honda, IIFL Finance, SBI Life Insurance, Sony and Shriram Transport.

As of June 30, 2023, They have a widespread network consisting of 4,331 locations (excluding staffing locations) managed from 129 points of presence with 116 offices situated in India and 13 offices situated overseas.

Issue size:

The Rs. 640 crore public offer of Updater Services Limited comprises a fresh equity issue worth 400 crores and OFS worth 240 crores.

Objects of the issue and proceeds utilization:

Purpose Proceeds (₹ crores)
Repayment and /or prepayment of certain borrowings availed by the Company. 133
Funding the working capital requirements. 115
Pursuing inorganic initiatives. 80
General corporate purposes Balance

Financial information and other valuation metrics

Financial Year Total Assets (₹ crores) Total Revenue (₹ crores) Profit After Tax (₹ crores) EPS EBITDA (₹ crores)
March 31, 2021 579.49 1,216.35 47.56 8.53 70.22
March 31, 2022 874.57 1,497.89 57.37 10.47 86.53
March 31, 2023 1,216.95 2,112.09 34.61 6.77 99.77

IPO Schedule

Issue Period 25th September to 27th September 2023
Price band ₹ 280 - 300
Minimum Bid quantity 50 & Multiples thereof
Deadline for accepting UPI mandate Until 5 PM on the issue closing day
Finalization of Allotment 4th October 2023
Initiation of Refunds 5th October 2023
Credit of Shares 6th October 2023
Date of Listing 9th October 2023
Mandate end date 12th October 2023
Anchor Investors Lock-In End Date 27th October 2023

How to apply to the Updater Services Limited IPO?

You can apply for the Updater Services Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for Updater Services Limited IPO?

You can check the allotment status for the Updater Services Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.