Updater Services witnessed its stock debut on the NSE at Rs 285, slightly below its issue price of Rs 300. Similarly, on the BSE, the company’s shares were listed at Rs 299.90, marking a 5% discount to the IPO price. This listing may be disappointing for investors, considering the less-than-expected initial trading value.
Factors Contributing to the Listing Price
Several factors may have contributed to the lackluster stock debut. Firstly, the company’s IPO was priced relatively high, which, coupled with mixed financial performance and associated risks, might have deterred investors. Additionally, the broader market sentiment at the time of the listing could also have played a role in the subdued response.
Recommendation for IPO Allottees
Investors who were allotted shares in the Updater Services IPO should carefully evaluate the related risks and the current market environment. Given the lackluster listing, they may consider exiting their positions to manage potential losses or to explore better investment opportunities.
IPO Details
Updater Services’ initial public offering (IPO) was open for public subscription from September 25, 2023, to September 27, 2023. The IPO included a fresh issue of 133,33,333 shares, amounting to Rs 400 crore, and an offer-for-sale (OFS) with promoters selling 80,00,000 shares worth Rs 240 crore. The lot size for the IPO was 50 shares. The overall subscription for the IPO was 2.96 times, with the non-institutional investors portion at 0.89 times, the QIB category at 4.50 times, and the Retail Individual Investors (RIIs) quota at 1.45 times. The Grey Market Premium (GMP) of Updater Services’ IPO remained unchanged ahead of its listing.
