Updater Services Ltd IPO Timeline

Updater Services Ltd IPO opens on 25-Sep-2023, and closes on 27-Sep-2023. The Updater Services Ltd IPO bid date is from 25-Sep-2023 to 27-Sep-2023. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Updater Services Ltd IPO Opening Date 25-Sep-2023
Updater Services Ltd IPO Closing Date 27-Sep-2023
Basis of Allotment 28-Sep-2023
Initiation of Refunds 29-Sep-2023
Credit of Shares to Demat 03-Oct-2023
Updater Services Ltd IPO Listing Date 04-Oct-2023

Updater Services Ltd IPO Lot Size

Updater Services Ltd IPO lot size is 50 shares. A retail-individual investor can apply for up to 13 lots (650 shares or 195000).

Application Lots Shares Amount
Minimum 1 50 ₹15000
Maximum 13 650 ₹195000

Updater Services Ltd IPO Details

Updater Services Ltd IPO Date 25-Sep-2023 to 27-Sep-2023
Updater Services Ltd IPO Face Value Shares of ₹10 per share
Updater Services Ltd IPO Price ₹280 to ₹300 per share
Updater Services Ltd IPO Lot Size 50
Issue Size Shares of ₹10 (aggregating up to ₹640 Cr)
Fresh Issue Shares of ₹10 (aggregating up to ₹400 Cr)
Offer for Sale Shares of ₹10 (aggregating up to ₹240 Cr)
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 6428571
Retail Shares Offered Not less than 2228571
NII (HNI) Shares Offered Not less than 3342857
Company Promoters Raghunandana Tangirala, Shanthi Tangirala, Tangi Facility Solutions Pvt L.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Repayment and/or prepayment of certain borrowings availed by the company
  • 2 Funding the company working capital requirements
  • 3 Pursuing inorganic initiatives
  • 4 General corporate purposes

Company Financials

Updater Services Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2024 1223.50 1445.77 35.30
03-2023 913.61 1337.09 32.41
03-2022 610.77 1084.50 36.94
Amount in ₹ Crore
  • Integrated business services platform, operating across diverse segments.
  • Longstanding relationship with customers across diverse sectors leading to recurring business.
  • Track record of successful acquisition and integration of high margin business segments.
  • Pan India presence with large and efficient workforce coupled with strong recruitment capabilities.
  • Technology at the forefront of its current and future business.
  • Highly experienced Management team with support from PE Investors.
  • Operational risks are inherent in the company business as it includes rendering services in contrasting environments. A failure to manage such risks including any errors, defects or disruption in its service or inability to meet expected or agreed service standards, could have an adverse impact on the company business, cash flows, results of operations and financial condition.
  • The company has a large workforce deployed across workplaces and customer premises. Consequently, its may be exposed to service-related claims and losses or employee disruptions that could have an adverse effect on the company reputation, business, cash flows, results of operations and financial condition.
  • The company's businesses are manpower intensive and its inability to attract and retain skilled manpower could have an adverse impact on the company growth, business and financial condition. Further, in the event its are not able to manage the company attrition, its may not be able to meet the expectations of the customers, which may have an adverse impact on the financial condition.
  • A significant portion of the company revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.
  • The company's business could be adversely affected if its customers fail to renew their contracts with it or the company fail to acquire new customers.
  • The company face significant employee related regulatory risks and any significant disputes with its employees and/or concerned regulators may adversely affect the company business prospects, cash flows, results of operations and financial condition. Further, the company has significant employee benefit expenses, such as workers' compensation, staff welfare expenses and contribution to provident and other funds. In case its face an increase in employee costs that the company is unable to pass on to its customers, the company may be prevented from maintaining its any competitive advantage and the company profitability may be impacted.
  • The company has received and may in the future receive anonymous whistle blower complaints, which may adversely affect its reputation, which could consequently adversely impact the company business, cash flows, financial condition and results of operation.
  • The Proforma Financial Information included in this Draft Red Herring Prospectus may not be indicative of the company actual results of operations and financial position for such periods or as of such dates, or of expected results of operations in future periods or the company future financial position.
  • The company revenues and profitability vary across its business segments, thereby making the company future financial results less predictable.
  • The company may be unable to fully realize the anticipated benefits of its acquisitions, including that of Athena, and any future acquisitions or within the expected timeframe. If the company is unable to identify expansion opportunities or experience delays or other problems in implementing the expansion efforts, the company growth, business, cash flows, results of operations and financial condition may be adversely affected.
  • The company is dependent on its vendors for the supply of equipment and products that the company use in providing its services and solutions. If these vendors were to fail in meeting their obligations, the company business and operations would be materially adversely affected. Further, its may also be exposed to fluctuations in the prices of certain of these products and any volatility in their pricing may have an adverse effect on the company business, cash flows, financial condition and results of operations.
  • The company may be unable to perform background verification procedures on its personnel as well as on the company billable employees prior to placing them with its customers.
  • The company Statutory Auditors have included certain qualifications and observations in their auditor's report on the company audited consolidated financial statements as at and for the Financial Year ended March 31, 2022, and the annexure to the auditor's reports as required under the Companies (Auditor's Report) Order, 2020, and on the internal financial controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 in respect of the Company and certain of its Subsidiaries. The Statutory. Auditors have also included certain emphasis of matters in their auditor's report on its audited consolidated financial statements as at and for the Financial Years ended March 31, 2021 and 2022.
  • The COVID-19 pandemic, or a similar public health threat, has had an impact and could further impact the company business, cash flows, financial condition and results of operations.
  • The Company received foreign direct investment in the year 2017 under the automatic route, though private security agency services (which contributed to less than 3.00% of the Company's revenue) was not covered under the automatic route. Any action by the regulatory or statutory authority may affect its business and prospects.
  • The company costs of integrating and developing new services may outweigh the benefits received from such services in terms of revenue or profitability. Further, its may not be able to successfully grow the company new businesses which may result in an adverse impact on its prospects and the company revenues.
  • Significant disruptions of information technology systems and/or ERP systems or breaches of data security could adversely affect its business. Further, the company may be exposed to risks and costs associated with protecting the integrity and security of its systems as well as the company customers' operational and other confidential information.
  • The company may be required to receive or renew certain approvals or licenses required in the ordinary course of business or to commence new businesses. Failure to obtain or maintain or renew licenses, registrations, permits and approvals may adversely affect the company business, cash flows and results of operations.
  • An inability to manage the company rapid growth and business diversification initiatives may disrupt its operations and adversely affect the company business and growth strategies and future financial performance.
  • The company is dependent on a number of key personnel, including its senior management, and the loss of, or the company inability to attract or retain, such persons could adversely affect its business, cash flows, results of operations and financial condition.
  • The company has included certain standalone financial information of certain of the Subsidiaries in this Draft Red Herring Prospectus and such financial information may not be strictly comparable with the company Restated Consolidated Financial Information.
  • The industries in which the company operate are intensely competitive and have low barriers to entry in certain instances. Its inability to compete effectively may adversely affect the company business, cash flows, results of operations and financial condition.
  • There are outstanding legal proceedings involving the Company, the Promoters, the Subsidiaries and the Directors. Any adverse decision in such proceedings may render us / them liable to liabilities / penalties and may adversely affect the company business, results of operations, cash flows and reputation.
  • The company inability to identify, obtain and retain intellectual property rights, or to protect or use them, could harm the company business. Further, its may infringe upon the intellectual property rights of others, any misappropriation of which could adversely affect the company business and reputation.
  • The company customers may delay or default in making payments for services rendered by it. If the company is unable to collect its receivables from the customers, the company profits, cash flows and liquidity could be adversely affected.
  • Certain of the company customer contracts can be terminated by its customers without cause and with or without penalty, which could negatively impact the company revenue and profitability.
  • The company investments in technology systems may not yield intended results. The cost of implementing technologies for the operations could be significant and could adversely affect its business, cash flows, results of operations and financial condition.
  • The company financing agreements contain covenants that limit its flexibility in operating the company business. Its inability to meet the obligations, including financial and other covenants under the company debt financing arrangements could adversely affect its business, cash flows, results of operations and financial condition.
  • The compay has in the past entered into related party transactions and may continue to do so in the future, which may potentially have an adverse effect on its business.
  • The company's business requires significant amounts of working capital. Its may not be able to obtain future financing on favourable terms or at all or furnish bank guarantees in the future. If the company experience insufficient cash flows from its operations or are unable to borrow funds to meet the company working capital requirements, it may materially and adversely affect its business and results of operations.
  • The company is subject to risks arising from interest rate fluctuations, which could reduce its profitability and adversely affect the company business, cash flows, financial condition and results of operations.
  • The company insurance coverage may not be sufficient or may not adequately protect it against all material hazards, which may adversely affect its business, cash flows, results of operations and financial condition.
  • The company management will have broad discretion in how the apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Offer will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.
  • The company has not paid any dividends in the past and its ability to pay dividends in the future will depend on the company earnings, financial condition, working capital requirements, the performance of its acquired businesses, capital expenditures and restrictive covenants of the financing arrangements.
  • The company contingent liabilities and commitments as at September 30, 2022 as per Ind AS 37, as disclosed in the Restated Consolidated Financial Information could adversely affect its financial condition.
  • The premises for the company Registered and Corporate Office is held by it on lease which subject it to certain risks.
  • This Draft Red Herring Prospectus contains information from an industry report which the company has commissioned and paid for, from Frost & Sullivan. There can be no assurance that such third -party statistical, financial and other industry information is either complete or accurate.
  • If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company financial risks.
  • The company international operations or its ability to acquire new businesses overseas, may be constrained by Indian and foreign laws, as well as various business, economic, political and legal risks, which could adversely affect the company growth strategy and business prospects.
  • The company has experienced negative cash flows from operating, investing and financing activities in previous periods and cannot assure you that the company will not experience negative cash flows in future periods. Negative cash flows may adversely affect its financial condition, results of operations and prospects.
  • The company may need to change its pricing models as and when necessary to compete successfully and an inability to do so could have an adverse effect on its business, cash flows, financial condition and results of operations.
  • The Company will not receive any proceeds from the Offer for Sale.
  • The company propose to utilize a portion of the Net Proceeds to undertake acquisitions for which targets have not been identified. Its inability to complete such transactions may adversely affect the company competitiveness and growth prospects.
  • Certain non-GAAP financial measures and certain other statistical information relating to the company operations and financial performance have been included in this Draft Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
  • The company has subject to several tax regimes. Any failure to comply with such tax laws and any changes in tax laws and rules applicable to it may adversely affect the company cash flows, results of operations and financial condition.
  • The company Promoters and members of the Promoter Group will continue to retain significant shareholding in the Company after the Offer, which will allow them to exercise significant influence over it.
  • Certain of the company Promoters, Directors, Key Managerial Personnel and Senior Management may have interests in it other than reimbursement of expenses incurred and normal remuneration or benefits.
  • Conflicts of interest may arise out of common business objects between the Company and certain of the members of its Promoter Group.
  • An inability to accurately anticipate the cost and complexity of performing work on any fixed price or SLA linked contract undertaken by it may adversely affect the compay results of operations.
  • The company have issued Equity Shares during the preceding 12 months from the date of this Draft Red Herring Prospectus at a price which may not be indicative of the Offer Price.
  • Certain of the services that the company offer to its customers, are subject to seasonal variations. Such seasonality requires it to predict demand for the company services and its may consequently be unable to accurately forecast such demand.
  • Retain, strengthen and grow customer base with a focus on deepening relationships with existing customers.
  • Grow market share in key segments.
  • Introduce new products and services catering to existing and new customer segments.
  • Pursue inorganic growth through strategic acquisitions of high margin businesses supplemental to its operations.
  • Continue to improve operating margins.

Updater Services Ltd IPO Promoter Holding

Pre Issue Share Holding 80.58%
Post Issue Share Holding 58.46%

Updater Services Ltd IPO Subscription Status (Bidding Detail)

The Updater Services Ltd IPO is subscribed 2.9 times on Sep 27, 2023 05:00:00 PM. The public issue subscribed 1.39 times in the retail category, 4.48 times in the QIB category, and 0.85 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 4.48 0.85 1.39 - 2.9

Updater Services Ltd IPO Prospectus

Updater Services Ltd IPO Listing Date

Listing Date 04 Oct 23
BSE Script 543996
NSE Symbol UDS
Listing In BSE, NSE
ISIN INE851I01011
IPO Price ₹300
Face Value ₹10

Updater Services Ltd IPO Registrar

Link Intime India Pvt Ltd

Phone: +91 810 811 4949
Email: uds.ipo@linkintime.co.in
Website: www.linkintime.co.in

Updater Services Ltd IPO Lead Manager(s)

  1. IIFL Securities Ltd
  2. Motilal Oswal Investment Advisors Ltd
  3. SBI Capital Markets Ltd

FAQs on Updater Services Ltd IPO

Updater Services Ltd IPO, which opens for subscription from 25-Sep-2023 to 27-Sep-2023 has an issue size of ₹640 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Updater Services Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Updater Services Ltd IPO Opens for subscription from 25-Sep-2023 to 27-Sep-2023.

The lot size of Updater Services Ltd is 50 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹15000 and ₹195000 respectively.

Allotment date for Updater Services Ltd is 28-Sep-2023 and refund of application amount (in case allotment is not received) will begin from 29-Sep-2023. If your allotment goes through, then shares will be credited in your Demat account by 03-Oct-2023.

The registrar for Updater Services Ltd IPO is Link Intime India Pvt Ltd. You can check your IPO allotment status on the registrar's website.

The shares of Updater Services Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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