Ahead of IPO, Updater Services raises Rs 288 crore via anchor placement

Updater Services raised Rs 288 crore through the allotment of shares to anchor investors ahead of its initial public offering on Friday.

The company allotted 96,00,000 shares to anchor investors at Rs 300 apiece.

Of the total allocation to anchor investors, about 38% was allocated to three mutual funds through a total of six schemes.

ICICI Prudential was allocated nearly 17 lakh shares or over 17% of the total anchor placement. Franklin Templeton picked 11,66,700 shares, representing over 12% of the total anchor placement. Bandhan Mutual Fund was allocated 833,350 shares, representing 8.7% of the total anchor placement.

Besides these three mutual funds, Motilal Oswal MF, 360 ONE Asset and Aditya Birla Sun Life Insurance were the other domestic institutional investors that participated in the anchor placement.

BNP Paribas, Societe Generale, Citigroup Global Markets and Nomura Singapore are the foreign institutional investors that participated in the anchor placement.

The issue of the integrated facilities management (IFM) services provider will open for subscription on Monday and close on Wednesday. The price band for the IPO has been fixed at Rs 280-300 a share.The IPO comprises a fresh equity issue of Rs 400 crore and an offer for sale (OFS) of 80 lakh shares by the promoter and other selling shareholders.

The net proceeds from the fresh issue will be used towards funding working capital requirements, repayment of debt, pursuing inorganic initiatives and other general corporate purposes.

The company’s revenue from operations jumped 42% year-on-year to Rs 2,099 crore for the year ended March 2023. In the same period, the net profit, however, fell 39% to Rs 34.6 crore.

IIFL Securities, Motilal Oswal and SBI Capital markets are book-running lead managers to the issue, and Link Intime India is the registrar.

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