- Price Band fixed at ₹ 280 to ₹ 300 per equity share of face value of ₹ 10 each (“Equity Share”);
- The Floor Price is 28 times the face value of the Equity Shares and the Cap Price is 30 times the face value of the Equity Shares;
- Bid/ Offer will open on Monday, September 25, 2023 and close on Wednesday, September 27, 2023. The Anchor Investor Bidding Date shall be Friday, September 22, 2023;
- Bids can be made for a minimum of 50 Equity Shares and in multiples of 50 Equity Shares thereafter;
- Availability of the Red Herring Prospectus (“RHP”): A copy of the RHP shall be available on website of Securities and Exchange Board of India (“SEBI”) at www.sebi.gov.in and is available on the websites of the BRLMs, i.e. IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capitals Market Limited at www.iiflcap.com, www.motilaloswalgroup.com and www.sbicaps.com, respectively and on the website of BSE and NSE at www.bseindia.com and www.nseindia.com, respectively.
New DelhiAll India, September 21, 2023: Updater Services Limited (the “Company”), shall open its Bid/Offer in relation to its initial public offering of Equity Shares on Monday, September 25, 2023. The Offer comprises of a fresh issue of Equity Shares aggregating up to ₹ 4,000.00 million (“Fresh Issue”) and an offer for sale up to 8,000,000 Equity Shares by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”).
The Anchor Investor Bidding Date shall be Friday, September 22, 2023. The Bid/Offer will open on Monday, September 25, 2023 for subscription and will close on Wednesday, September 27, 2023.
The Price Band of the Offer has been fixed at ₹ 280 to ₹ 300 per Equity Share. Bids can be made for a minimum of 50 Equity Shares and in multiples of 50 Equity Shares thereafter.
The Company, as part of the Objects of the Offer, proposes to utilize the Net Proceeds raised through the Fresh Issue towards Repayment and /or prepayment of certain of its outstanding borrowings, amounting to ₹ 1,330.00 million. Further, the Company intends to utilize ₹ 800.00 million from the Net Proceeds towards pursuing unidentified inorganic initiatives, ₹ 1,150.00 million from the Net Proceeds towards funding its working capital requirements and the balance amount from the Net Proceeds towards general corporate purposes.
The Offer for Sale comprises of up to 4,000,000 Equity Shares by Tangi Facility Solutions Private Limited (The Promoter Selling Shareholder), up to 800,000 Equity Shares by India Business Excellence Fund-II and 3,200,000 Equity Shares by India Business Excellence Fund-IIA (“Other Selling Shareholders”).
The Equity Shares offered through the Red Herring Prospectus dated September 18, 2023 are proposed to be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, BSE is the Designated Stock Exchange.
This Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957 read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR Regulations”) and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such portion the “QIB Portion”), provided that our Company, in consultation with the Book Running Lead Managers, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than the Anchor Investor Portion) (the “Net QIB Portion”).
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders (out of which (i) one third shall be reserved for applicants with application size of more than ₹ 0.20 million and up to ₹ 1.00 million, and (ii) two-thirds shall be reserved for applicants with application size of more than ₹ 1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders), and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid bids being received at or above the Offer Price.
All Bidders, other than the Anchor Investors, are mandatorily required to participate in this Offer only through an Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders (as defined on page 11 of the RHP), as applicable, pursuant to which their corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or by the Sponsor Bank(s) under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process. For details, please see the section entitled “Offer Procedure” on page 514 of the RHP.
IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book running lead managers (“BRLMs”) to the Offer.
All capitalized terms referred to in this press release that have not been defined shall have the same meaning as prescribed in the RHP.
Disclaimer:
UPDATER SERVICES LIMITED is proposing, subject to, receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offer of its Equity Shares and has filed the RHP with the Registrar of Companies, Tamil Nadu at Chennai. The RHP shall be available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, the Company at www.uds.in and is available on the websites of the BRLMs, i.e. IIFL Securities Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited at www.iiflcap.com, www.motilaloswalgroup.com and www.sbicaps.com, respectively.
Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” on page 34 of the RHP. Potential investors should not rely on the Draft Red Herring Prospectus for making any investment decision instead shall rely on RHP.
The Equity Shares offered in the Offer have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold only outside the United States in ‘offshore transactions’ as defined in, and in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdictions where such offers and sales are made.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 491 of the RHP for the full text of the Disclaimer Clause of SEBI.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 494 of the RHP for the full text of the disclaimer clause of NSE.
DISCLAIMER CLAUSE OF BSE (Designated Stock Exchange): It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 494 of the RHP for the full text of the disclaimer clause of BSE.
