Updater Services' IPO subscribed 16% on day 2

26 Sep 2023 , 10:02 PM

Updater Services’ initial public offering (IPO) has yet to gain significant traction from investors, as it remains undersubscribed even on the second day of bidding, September 26. Click here to subscribe the IPO.

As per available subscription data, the Rs 640-crore IPO has achieved a subscription rate of 16% so far, with bids received for 19.16 lakh equity shares against the offered size of 1.2 crore shares.

Retail investors have continued to show support for the offering, subscribing to 68% of the shares allocated to them. High net-worth individuals have subscribed to 12% of their allotted quota. However, qualified institutional buyers (QIBs) have yet to express interest in the offer.

The IPO distribution comprises 75% of shares reserved for QIBs, 15% for high-net-worth individuals, and the remaining 10% for retail investors. On the first day of bidding, which was September 25, the IPO had achieved a subscription rate of 6%.

Updater Services’ public offering is composed of a fresh issuance of shares valued at Rs 400 crore and an offer-for-sale of shares worth Rs 240 crore by three selling shareholders, including promoter Tangi Facility Solutions. The price band for the offer is set at Rs 280-300 per share, and the post-issue market capitalization of the company, at the upper price band, is estimated at Rs 2,001 crore.