Updater Services IPO: Mumbai-Based Updater Services Announces Share Price; Know Issue Date, Size And Other Details

Mumbai-based Updater Services has fixed the price band at Rs 280-300 per piece for its initial public offering (IPO). The issue will open for subscription in September and will close on 27.

The Rs 640 crore IPO comprises fresh issuance of shares worth Rs 400 crore and an offer-for-sale (OFS) of 80 lakh shares worth Rs 240 crore by three shareholders.

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Its promoter Tangi Facility Solutions will be offloading 40 lakh shares and the remaining 40 lakh will be sold by India Business Excellence Funds II & IIA. The original OFS size of 1.33 crore shares was decreased to 1.09 crore shares in the DRHP addendum and subsequently further reduced to 80 lakh shares in the red herring prospectus.

The anchor book will open for investment on September 22. Generally, Anchor investors are institutional investors or QIBs who are invited to subscribe to the shares before an IPO opens for subscription to shore up investor confidence.

The company has reserved 75% of the IPO for offer size for qualified institutional buyers, 15% for high networth individuals (non-institutional investors) and the remaining 10% for retail investors.

Investors can bid for a minimum of 50 shares and in multiples of 50 shares thereafter, which means the minimum application size for retail investors would be Rs 15,000 (50 shares) and their maximum investment would be Rs 1,95,000 (for 650 shares).

The company intends to use the fresh issue proceeds to repay debt amounting to Rs 133 crore, working capital requirements of Rs 115 crore, and inorganic initiatives at a cost of Rs 80 crore. The remaining funds will be used for general corporate purposes.

The completion of the allotment process, in collaboration with BSE, is scheduled for completion by the conclusion of October 4th. Shares will then be deposited into the demat accounts of successful investors by October 6th.

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Refunds or the release of funds from ASBA accounts for investors who were not successful will be initiated by the end of October 5th. Following this schedule, the shares are set to be listed on both the BSE and NSE on October 9th as per the IPO timeline.

The merchant bankers to the issue are IIFL Securities, Motilal Oswal Investment Advisors, and SBI Capital Markets.