Updater Services IPO subscribed only 6% so far on day 1

25 Sep 2023 , 04:57 PM

On the first day of bidding, which was September 25, the public issue of facility management consultant Updater Services received a relatively muted response from investors. There were bids for 6.87 lakh equity shares against the IPO size of 1.19 crores, resulting in a subscription rate of 6%. Click here to subscribe the IPO.

Among the investor categories, retail investors displayed more active participation, acquiring 29% of the shares allocated to them, which accounts for 10% of the total issue size. In contrast, high net-worth individuals (HNIs) have purchased only 1% of the shares from the reserved portion.

The IPO has set aside 15% of its shares for high net-worth individuals and 75% for qualified institutional buyers (QIBs), who are yet to participate in the offering.

Updater Services, based in Mumbai, aims to raise Rs 640 crore through the initial public offering at the upper end of the price band. This comprises a fresh issue component of Rs 400 crore and an offer-for-sale of Rs 240 crore worth of shares by promoters and investors.

The price band for the IPO has been fixed at Rs 280-300 per share. The net proceeds from the fresh issue will serve various purposes, including debt repayment of Rs 133 crore, meeting working capital requirements of Rs 115 crore, undertaking inorganic initiatives with Rs 80 crore, and allocation to general corporate purposes.