Updater Services Ltd has filed a preliminary red herring prospectus with the Securities and Exchange Board of India (SEBI) to secure funding through an initial public offering.

The initial public offering (IPO) will consist of a new issue of Rs 400 crore and an offer to sell up to 1.33 crore shares by its existing shareholders and promoters.

The sale offer will include up to 66.5 lakh shares in Tangi Facility Solutions Pvt Ltd, up to 13.3 lakh shares in India Business Excellence Fund – II and up to 53.2 lakh shares in India Business Excellence Fund – IIA.

The Rs 133 crore raised from the new issue will be used to repay debt. Updater Services Ltd has consolidated borrowings of Rs 194.17 crore as of December 2022.

In addition, Rs 115 crore will be used to meet working capital requirements as the company has working capital loans combined with outstanding debt of Rs 134.48 crore as of December 2022.

Finally, the company intends to use the newly issued Rs 80 crore to pursue inorganic initiatives to expand its business.

IIFL Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers for the offering.

Updater Services Ltd is a preeminent integrated business services platform based in India. It provides clients nationwide with comprehensive Integrated Facilities Management (IFM) services and Business Support Services (BSS).

The company is the second largest player in the Indian IFM market, and its broad service offering sets it apart. It also provides audit and assurance services through its subsidiary Matrix, a leading provider of dealer/distributor audits and retail audits. It has an extensive range of branches and on-site partners, which puts it at the forefront of the Indian market. Additionally, Updater Services Ltd offers an employee background verification check service through Matrix.

In addition, the company provides sales support services through its subsidiaries, Denave and Athena. Also, it is the market leader in mailroom management services in India through its subsidiary Avon.

For FY22, the company reported revenue of Rs 1,483.55 crore against Rs 1,210.03 crore a year ago. Net profit for the period was Rs 57.37 crore compared to Rs 47.56 crore last year. EBITDA margin remained at 5.8% from 5.78% last year.