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Updater Services gets Sebi nod to raise funds via IPO


Mumbai: Updater Services Ltd. (UDS), a Chennai-based Integrated facilities management, has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO).

The IPO comprises a fresh issue of shares of up to 400 crore and an offer for sale (OFS) of up to 1.33 crore shares by a promoter and existing shareholders.

Promoter Tangi Facility Solutions Private Ltd. will offload 66.5 lakh shares in the IPO and two private equity funds, India Business Excellence Fund-II and India Business Excellence Fund–IIA, will sell 13.3 lakh and 53.2 lakh shares, respectively.

According to the draft red herring prospectus (DRHP), proceeds from the IPO will be used to repay certain borrowings availed by the company, funding working capital requirements, pursuing inorganic initiatives, and for general corporate purposes.

The company has appointed IIFL Securities, Motilal Oswal Investment Advisors and SBI Capital Markets as managers to the issues.

UDS offers integrated facilities management (IFM) services and business support services (“BSS”). It was founded in 1990 by Raghunandana Tangirala, who has over 30 years of experience in the integrated business services industry. UDS has since grown to become one of the leading providers of business services in India, with over 1,300 customers across the country.

Within the IFM & other services segment, the company operates across service lines such as soft services, production support services, engineering services, warehousing management, pest control and horticulture that have been added by us organically, over a period of time.

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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Updated: 12 Sep 2023, 01:43 PM IST

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.