Updater Services IPO

Updater Services is a prominent, focused, and integrated business services platform in India, with a pan-India presence, providing integrated facilities management services and business support services to our clients. (Source: F&S Report). Updater Services IPO will hit the stock market in September 2023.

About Updater Services

They are a distinct & differentiating participant in the market since they are the second-largest player in the IFM market in India and have the industry’s broadest service offering. Through their subsidiary, Matrix, they provide Audit & Assurance services within their BSS segment.

According to F&S Report, Matrix is a leading Audit & Assurance company for dealer / distributor audits and retail audits. The company’s strong branch network and field associate network have helped it to become the market leader in India with a market share of 16.2% in the Financial Year ended March 31, 2022.

They additionally provide Matrix, the third-largest firm in India with a 5.7% market share, for employee background verification check services in the Financial Year ended March 31, 2022.

 Subsidiaries

Raghunandana Tangirala, who has more than 30 years of experience in the field of integrated business services, started their company Updater Services limited. They started off as a cleaning and catering business in Chennai, Tamil Nadu (India), and they were established in 1990.

Through their subsidiaries Denave and Athena, they offer services for sales enablement, and according to the F&S Report, Denave held the greatest market share in India for the financial year that ended on March 31, 2022, with a share of 15.4%.

Additionally, they provide mailroom management services through their subsidiary, Avon, which leads the Indian market for these services with a 15.5% market share in the fiscal year that ended on March 31, 2022. (Reference: F&S Report)

Services

The fact that all their services are B2B and typically take the form of annuity-based services, whereby the customer, once obtained, earns revenue over an extended period of time, gives them all commonalities.

Their business approach spreads out the costs of acquiring the customers and provides the chance to cross-sell and up-sell other services, leading to a bigger wallet share from their clients.

Another shared feature of several of the services they provide is that they help customers run their businesses more effectively.

All of their services play a crucial role in the success of their clients’ businesses and help to develop their core value. These services are typically generated and provided using a combination of people, procedures, and technology.

Updater Services IPO

Updater Services Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus (DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 400 Crore & 13,300,000 equity shares on 27 March 2023.

The offer includes 400 Crore fresh issue and there is offer for sale (OFS) of 13,300,000 equity shares by the promoters mentioned in the DRHP. They are looking for Pre-IPO placement of 80 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	1,080.42	874.57	579.49	604.63
Total Revenue	996.46	1,497.89	1,216.35	1,316.78
Profit After Tax	20.19	57.37	47.56	33.08

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	6.28	6.24	3
Financial Year 2021	8.53	8.47	2
Financial Year 2022	10.47	10.40	1
Weighted Average	9.13	9.06
30 Sep 2022	3.83	3.80

Objects of the Issue

• Repayment/prepayment of debt.
• General corporate objectives and organic growth.

Basis of the offer

Updater Services feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• Leading platform for comprehensive business services that serves many different market categories.
• Enduring connections with clients across numerous industries that result in repeat business.
• Successful track record of acquiring and integrating high margin business divisions
• With a sizable and effective workforce across all of India and great hiring capacities.
• The core of their business, both now and in the future, is technology.
• Highly skilled management team supported by significant PE investors.

Updater Services Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Quess Corp Limited	21.65
2	5	SIS Limited	16.00
3	10	TeamLease Services Limited	102.08

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on March 22, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.

Updater Services IPO Details

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	400 Crore & 13,300,000 equity shares
Fresh Issue	400 Crore
Offer for Sale	13,300,000 equity shares

Updater Services IPO Date

Updater Services Limited IPO opening date is September 2023, and the closing date is September 2023. The Updater Services issue may list in September 2023.

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Basis of Allotment Date	September 2023
Initiation of Refunds	September 2023
Credit of Shares to Demat Account	September 2023
IPO Listing Date	September 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Updater Services IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Updater Services IPO.

Updater Services IPO GMP

Updater Services Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Updater Services Limited IPO Review

Updater Services Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Updater Services IPO is good or bad.

Updater Services IPO Risk

• Updater Services’ line of work involves providing services in various environments, which entails operational risks. Failure to control these risks, which include any inaccuracies, flaws, interruptions in service, or inability to provide expected or agreed-upon service standards, could negatively affect a company’s operations, cash flows, operating results, and financial condition.
• They have a sizable personnel that is spread out throughout offices and client locations. As a result, they can be vulnerable to service-related lawsuits, financial losses, or staff interruptions that could harm their business, cash flow, performance, and financial standing.
• Their industries require a lot of labor, thus their inability to recruit and keep talented workers could negatively affect their business, development, operations, cash flows, operational results and financial standing.

Other Threats

1. Their business, cash flows, operational results, and financial health could all be negatively impacted by any negative developments impacting the few geographic regions from which a sizable amount of their sales originate.
2. If their clients choose not to extend their contracts with them or if they are unable to find new clients, their business may suffer.
3. They are subject to major regulatory risks relating to personnel, and any serious conflicts with their staff or concerned regulators might have a negative impact on their business prospects, cash flows, operational results, and financial condition.
4. They have received and might yet receive anonymous whistleblower complaints, which could harm their reputation and, in turn, hurt their business, cash flow, financial situation, and operational outcomes.

Growth

They have had rapid expansion over the years and are currently regarded as a market leader in several of their business sectors. (F&S Report as Source)

They have a comprehensive range of solutions covering physical facilities, business processes, people management, production support, Audit and Assurance services, and revenue improvement to meet the demands of customers across segments between their IFM & Other services sector and BSS segment.

Their IFM & Other services segment accounted for 91.57%, 90.46%, 79.59%, and 71.81% of their revenue from contracts with clients during the Financial Years ended March 31, 2020, 2021, and 2022, respectively, while their BSS segment accounted for 8.63%, 9.74%, 20.73%, and 28.76% during the six months period ended September 30, 2022.

Updater Services IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Updater Services IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Updater Services Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2023	1
September 2023	2
September 2023	3

Updater Services Limited Management

Their Promoter, Chairman, and Managing Director, Raghunandana Tangirala, started the business and has been in charge of it for more than three decades with his vision, leadership, and direction.

Over the years, Raghunandana Tangirala has driven the integrated business services industry’s growth with his more than 30 years of experience in the field. Another important factor that directs their management is their Board, which is made up of qualified and experienced directors with a track record in business.

They are also supported by a strong management and operations team made up of experts in their fields who have proven they are capable of managing and expanding their operations both organically and through the acquisition and integration of other companies.

Updater Services Limited‘ Promoters

• Raghunandana Tangirala
• Shanthi Tangirala

Promoters’s Holding

Pre Issue Share Holding	60.10 %
Post Issue Share Holding

Updater Services Limited Prospectus