Update Services is offering its shares in the range of Rs 280-300 per shares and with a lot size of 50 equity shares and its multiples thereafter. 
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Update Services is offering its shares in the range of Rs 280-300 per shares and with a lot size of 50 equity shares and its multiples thereafter. The Rs 640 crore-IPO of Updated Services received a muted response from investors during initial few hours of the bidding process on Day 1. The issue, which opened for subscription for bidding on Monday, September 25 and can be subscribed till Wednesday, September 27. Update Services is offering its shares in the range of Rs 280-300 per shares and with a lot size of 50 equity shares and its multiples thereafter. The Rs 640 crore IPO includes a fresh share sale for up to Rs 400 crore, while existing shareholders and promoters will offload 80 lakh shares for Rs 240 crore. According to the data, the investors made bids for 3,93,200 equity shares, or only three per cent, compared to the 1,19,99,999 equity shares offered for the subscription by 1.30 pm on Monday, September 25. The allocation for retail investors was booked at 17 per cent, while the portion for non-institutional investors qualified institutional bidders (QIBs) did not have any bids. Updater Services offers facility management services and business support services and operates in the business-to-business (B2B) services space. Incorporated in 1990, Updater Services served 2,797 customers across various sectors at domestic and global levels as of June 30, 2023. It has a network of 4,331 locations via 116 offices situated in India and 13 offices situated overseas. On Friday, Updater Services raised Rs 288 crore from 18 anchor investors by allocation of 96 lakh equity shares at a price of Rs 300 apiece. Motilal Oswal Investment Advisors, IIFL Securities, and SBI Capital Markets are the lead managers for the issue, while Link Intime India is the registrar for this IPO. Brokerage firms have a mixed view on the IPO of Updater Services. "The company is also looking to pursue inorganic growth through acquisition of high margin businesses with expansion of standalone margin. However, the company looks expensive vis a vis its peers in terms of valuation. Hence, we recommend subscribing to subscribe the issue for the long term," said Canara Bank Securities. The financial performance of the company has been mixed, with growing revenue but declining profit. The company faces certain regulatory and operational risks due to the nature of its business. It is also exposed to service-related claims and losses. The issue is priced at a P/E of 44.3 times, which is significantly higher than its listed peers, said Swastika Investmart with an 'avoid' rating.
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