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.
Not for distribution outside India
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.
Not for distribution outside India
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.
Not for distribution outside India
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.
