Updater Services IPO undersubscribed on day 3; check live details here

27 Sep 2023 , 01:13 PM

Updater Services, headquartered in Chennai, launched its initial public offering (IPO) for subscription on Monday, September 25, with the subscription period set to conclude today. As of day 2, the IPO had garnered a subscription rate of only 16%. Click here to subscribe the IPO.

On day 3, by 1 PM, the IPO had received bids for 69,67,500 equity shares out of the 1,19,99,999 shares available for subscription, translating to a 58% subscription rate.

In terms of investor categories, the retail portion of the IPO witnessed strong interest and achieved a 96% subscription rate. However, the response from non-institutional investors remained subdued, with a subscription rate of only 34%. Qualified institutional investors (QIBs) subscribed to 56% of their allocated portion.

The allocation of shares in the offering consists of 75% reserved for qualified institutional investors, 15% for high-net-worth individuals, and the remaining 10% for retail investors.

Updater Services, a business support services company, plans to utilize the proceeds from the fresh issue for debt repayment amounting to Rs 133 crore and addressing working capital requirements amounting to Rs 115 crore. Additionally, the company will allocate funds from the fresh issue for inorganic initiatives worth Rs 80 crore and for general corporate purposes.