Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price

Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price
Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price
Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price
Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price

Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price

Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price

Updater Services Limited IPO Lists at Discount, Shares Open Lower than Issue Price

Updater Services Limited made its stock market debut on Wednesday, marking a significant milestone for the Chennai-based company. Here’s a closer look at this development and its implications.

Updater Services Limited’s Initial Public Offering (IPO) had generated substantial anticipation. The IPO was launched with a price band ranging from ₹280 to ₹300 per equity share, with a face value of ₹10 per share. Subscriptions for this IPO were accepted from September 25 to September 27.

IPO Listing Performance

On the National Stock Exchange (NSE), Updater Services Limited’s share price opened at ₹285 per share, a 5% decrease from the issue price of ₹300. Meanwhile, on the Bombay Stock Exchange (BSE), the stock debuted at ₹299.90 per share. This listing at a discount to the IPO price has drawn attention in the market.

Share Distribution and Utilization of IPO Proceeds

Updater Services Limited allocated a substantial portion of its IPO shares to different categories of investors. Qualified Institutional Buyers (QIBs) received at least 75% of the shares, while Non-Institutional Investors (NIIs) were allotted up to 15%. Retail Investors were offered up to 10% of the IPO shares.

The funds raised through this IPO will serve various purposes, including paying off borrowings, supporting working capital requirements, pursuing inorganic activities, and funding general corporate needs. The book running lead managers for this IPO are IIFL Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd. The registrar is Link Intime India Private Ltd.

Company Performance and Grey Market Premium

Updater Services Limited reported robust financial performance for the fiscal year 2022, with revenues totaling ₹1,483.55 crore, compared to ₹1,210.03 crore in the previous fiscal year. The net profit for the period stood at ₹57.4 crore, an increase from ₹47.5 crore in the prior year.

In the grey market, Updater IPO’s Grey Market Premium (GMP) was ₹0, indicating that shares were trading at their issue price of ₹300, without any premium or discount. GMP reflects investor sentiment and their willingness to pay more than the IPO price.

This IPO debut marks a significant moment for Updater Services Limited, and the market will closely monitor its performance in the coming days.

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