Updater Services makes weak debut; lists 5% below issue price

Shares got listed at Rs 285, a 5 per cent below its issue price of Rs 300 per share on the National Stock Exchange.

Updater Services has made a weak market debut, with its shares listed at Rs 285, a 5 per cent discount when compared to its issue price of Rs 300 per share on the National Stock Exchange (NSE). The stock listed at Rs 299.90 on the BSE on Wednesday.

Post listing, the market price of Updater Services hit a low of Rs 284.15 and a high of Rs 297.85 on the NSE. At 10:04 AM; it was trading at Rs 294.05, 2 per cent lower form its issue price. A combined around 700,000 shares changed hands on the NSE and BSE. In comparison, the Nifty 50 was down 0.70 per cent at 19,395.
 

The Rs 640 crore initial public offer (IPO) of integrated facilities management company was subscribed 2.96 times. The portion for qualified institutional buyers (QIBs) was subscribed 4.5 times while the quota for retail individual investors (RIIs) received 1.45 times subscription. The non-institutional investors part got subscribed 89 per cent.

Updater Services offers facility management (FM) services and business support services (BSS). Operating in the Business-to-Business (B2B) segment, the company offers a wide spectrum of business services, which are broadly classified into the two following segments such as FM & Other Services Segment and BSS Segment.

Through the marque clients, past acquisitions and operational efficiency, the company has successfully created a niche place in services. Moreover, company has aimed for high margin through value-added services with the support of latest technology in its portfolio, analyst at Anand Rathi Share and Stock Brokers said in IPO note.

Updater Services is looking to increase its customer base with expansion of key segments and introduce new products and services catering to existing and new customer. 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, according to analyst at Canara Bank Securities.