Updater Services IPO sees tepid demand on day 2, retail portion booked 68%

Updater Services IPO subscription status: Updater Services IPO has been subscribed 16% on day 2.

Chennai-based Updater Services IPO opened for subscription on Monday, September 25, and will close tomorrow (Wednesday, September 27). 

Updater Services IPO price band has set in the range of ₹280 to ₹300 per equity share of face value of ₹10. Updater Services IPO lot size is 50 equity shares and in multiples of 50 equity shares thereafter.

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Updater IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.

Updater IPO's retail investors portion was subscribed 68%, NII portion was subscribed 12%, and Qualified Institutional Buyers (QIB) portion did not receive any bids.

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Updater Services IPO subscription status details

Updater IPO has received bids for 19,23,550 shares against 1,19,99,999 shares on offer, according to data from the BSE.

Updater Services IPO retail investors' portion received bids for 15,25,850 shares against 22,28,571 shares on offer for this segment.

Updater IPO's non-institutional investors' portion received bids for 3,97,700 shares against 33,42,857 on offer for this segment.

Updater Services IPO Day 2: GMP, review, other key details. Should you subscribe?

Updater Services IPO details

Updater IPO consists of fresh issue of shares of up to ₹400 crore and an offer for sale (OFS) of up 8,000,000 equity shares of face value of Rs10 each by a promoter and others.

Promoter Tangi Facility Solutions Private Ltd will offload 40 lakh shares in the IPO and two private equity funds, India Business Excellence Fund-II and India Business Excellence Fund–IIA, will sell 8 lakh and 32 lakh shares, respectively.

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According to the red herring prospectus (RHP), net proceeds from the IPO to pay off some borrowings it has taken out, support working capital needs, pursue inorganic activities, and for general corporate purposes.

IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd, are the book running lead managers to the issue, and the registrar is Link Intime India Private Ltd.

For FY22, the firm reported revenue of ₹1,483.55 crore as against ₹1,210.03 crore in FY21. Net profit for the period stood at ₹57.4 crore as against ₹47.5 crore last year.

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Updater Services IPO GMP today

Updater IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹300 with no premium or discount in the grey market according to topsharebrokers.com

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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