The Road to Public Ownership: Updater Services Limited's IPO

Updater Services Limited, India’s one of largest facilities management companies will be offering its equity shares worth Rs.4000 million through Initial Public Offerings for anchor investors from 22nd September 2023 and for public issue from 25th September 2023 to 27th September 2023.

Updater Services Limited (UDS) is India’s largest facilities management company managing around 150 million sq. feet of customer space. Offers Integrated Facilities Management Services to all the industry verticals with the support of CAFM (Computer Aided Facilities Management) and SAP.

The company’s main objective of this IPO is to utilize the proceeds for repayment of loans, working capital expenditure, inorganic initiatives, and general corporate expenses.

Updater Services Limited– Their Story

The company started in 1990 in Chennai, Tamil Nadu as a housekeeping and catering B2B services management partnership firm. Over the years, the company has grown into an integrated business services management serving customers across all verticals across India. The firm started its operational services outsourced with Saint Gobain Glass India Private Limited in 2002, followed by transforming into a private limited company in the year 2003. In 2006, the company’s total revenue was Rs.500 million and it acquired 51% of shares of Avon Solutions & Logistics Private Limited with its presence all over India. As the years passed, the company entered into service agreements with the largest private airports, hospitals, metro rail, Sardar Vallabhbhai Patel – Statue of Unity, ports, medical institutions, etc.

Services Sector - Integrated Facility Management (IFM) Market

As per the report titled “Assessment of Integrated Facilities Management Market in India” by Frost & Sullivan dated 27th March 2023, prepared exclusively on commission by UDS for IPO.

One of the major contributors to India’s GDP is the service sector with IT and E-commerce as key segments attracting foreign investments and providing employment opportunities.

These service sector companies are always in need of facility management services for their day-to-day activities. Companies in the service sectors are looking to outsource these tasks rather than internal management.

The IFM market is shifting from a single service to an integrated services model to cater to the needs of people working in the building, this helps the company to manage all the services under one management agreement. 

UDS is the third largest Integrated Facilities management provider in India, with a vast range of service offerings. It has expanded its portfolio by entering into high-margin business agreements and acquisitions.

Updater Services IPO (Initial Public Offering) Details

Goals & Objectives

The Company proposes to utilise the Net Proceeds towards funding the following objects are estimated:

IPO Calendar

Updater Services IPO date and other important dates are given below.

IPO Price Details

Details of Updater Services Limited IPO share price and other details are given below

Investment Potential

Qualitative Factors

• Integrated Business Services Management 

• Agreements with customers across diverse verticals

• Acquisition of high margin businesses

• Presence all over India

• Advanced Technology

• Experienced management Team

Quantitative Factors 

 

 

 

Risk Factors

Internal Risks of the company

Equity share investments are highly risky. Kindly read through Reh Herring Prospectus document released by SEBI for more information about the company.

• Entire proceeds from the offer for sale will be utilized by the selling shareholders- Tangi Facility Solutions Private Limited, India Business Excellence Fund – II and India Business Excellence Fund – IIA

• Before 12 months, the company has issued equity shares on preferential allotment of 134,988 to Matrix Business Services India Private Limited.

• The company has also proposed to utilize a part of the net proceeds for acquisition for which no decision is made by the company.

• The Profit After Tax of the company for FY2023 has reduced by 39.68% and 27.24% in FY2022 and FY2021 

External Risks

• In case of financial and political instability.

• Changes in economic activity

• Natural and Man-made disasters

• Inflation

• Foreign Investment Restriction

 

Frequently Asked Questions

What is the Offer Open and Close Date for the IPO?

The Bid opens on 25th September,2023 (Monday) and closes on 27th September,2023 (Wednesday by 5.00pm).

What are Updater Services Limited IPO Price offer?

Updater Services Limited IPO price band is Rs280- Rs.300 per share

What is the Lot size?

The lot size is 50 shares

 

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