Updater Services Ltd, an integrated facilities management company whose IPO was open between September 25 and September 27, made a muted stock market debut on Wednesday, listing with a discount of 5 per cent on the NSE, against the issue price of Rs 300. At the NSE, the stock listed at Rs 285, down 5 per cent from the issue price. It further declined 5.28 per cent to Rs 284.15.
The stock made its debut at Rs 299.90, lower by 0.03 per cent from the issue price on the BSE. Later, it declined 5 per cent to Rs 285. The company commanded a market valuation of Rs 1,950.72 crore.
Shivani Nyati, head (wealth) at Swastika Investmart Ltd, said, “Updater Services Ltd. made its debut on the stock markets by listing at Rs 285 per share, 5 per cent lower than its IPO price of Rs 300. Overall, the listing of Updater Services is disappointing for investors. However, the company’s high IPO price, mixed financial performance, and associated risks likely contributed to the negative response in the market.”
Nyati added that current market sentiments could also be a contributing factor to such a listing. “Investors who received allotments in the IPO should consider all these related risks and exit their position after this listing.”
The initial public offer of Updater Services was subscribed 2.90 times on the final day of subscription last week. The Rs 640-crore IPO had a fresh issue of equity shares aggregating up to Rs 400 crore and an offer-for-sale of up to 80 lakh equity shares by a promoter and existing shareholders.
The initial share sale had a price range of Rs 280-300 a share. 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.
(With Inputs from PTI)
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