Updater Services receives Sebi's approval to go-ahead to float IPO

Integrated facilities management company Updater Services Ltd has received capital markets regulator Sebi's approval to raise funds through an initial public offering (IPO).

The IPO will comprise a fresh issue of equity shares aggregating up to Rs 400 crore and an offer for sale (OFS) of up to 1.08 crore equity shares by a promoter and existing shareholders.

Under the OFS, Tangi Facility Solutions Private Ltd, India Business Excellence Fund-II and India Business Excellence Fund-IIA will be selling shares of the company.

Updater Services Ltd, which filed its draft papers in March, said that it will also consider a pre-IPO placement, aggregating up to Rs 80 crore. If such a placement is completed then the size of the fresh issue is reduced.

In July, the company revised its OFS size from 1.33 crore equity shares to up to 1.08 crore equity shares by its promoter and investor-selling shareholder.

Updater Services obtained its observations letter on September 4, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, obtaining an observation letter implies its approval to float the initial share sale..

Going by the draft papers, proceeds from the fresh issue will be used for payment of debt, funding working capital requirements, pursuing inorganic initiatives and general corporate purposes.

The company offers integrated facilities management services and business support services to its clients..

It caters to customer segments across sectors such as FMCG, manufacturing and engineering, BFSI, healthcare, IT/ITes, automobiles, logistics and warehousing, airports, ports, infrastructure and retail.

IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd and SBI Capital Markets Ltd are the book-running lead managers to the issue.

Equity shares of the company will be listed on the BSE and the NSE.