Updater Services stock surges 11% on acquiring stake in subsidiary; details

Updater Services shares surged up to 10.6 per cent at Rs 358.60 per share on the BSE in Wednesday’s intraday deals. This came after the company acquired an additional 22.3 per cent stake in Denave India for Rs 52.57 crore on Tuesday.

“The company has increased the investment in Denave India, material subsidiary company from 67.27 per cent to 89.57 per cent by acquiring 37,48,614 equity shares from its promoters and other shareholders,” the company said in an exchange filing.

Another subsidiary of Updater Services, Matrix Business Services holds 10.43 per cent in Denave. Further to the acquisition, the post shareholding percentage in Denave of the company along with its subsidiary now stands at 100 per cent.

As of 31 March 2024, Denave India Private Limited reported a consolidated turnover of Rs. 454.28 crore. The company's consolidated profit after tax (PAT) stood at Rs. 20.23 crore. 

Over the past three years, Denave India’s consolidated turnover has increased significantly. For the financial year 2021-22 (FY22), the turnover was Rs. 2,64.86 crore. In FY 22-23, it rose to Rs. 3,64.22 crore, marking an increase of approximately 37.6 per cent. For FY 23-24, the turnover further grew to Rs. 454.28 crore, representing a 24.8 per cent rise from the previous year.

Denave India Private Ltd, incorporated on 12th January 1999, is currently engaged in sales enablement as well as various support and staffing services.

Updater Services has a total market capitalisation of Rs 2,382.36 crore. Its shares are trading at a price to earnings multiple of 61.44 times with an earning per share of Rs 5.27. 

The share price of the company has zoomed 9.2 per cent year to date, while it has gained 25.4 per cent in the last one year.

At 12:59 PM; the stock of the company was trading 9.71 per cent higher at Rs 355.45 per share on the BSE. By comparison, the BSE Sensex was nearly flat, down 0.07 per cent at 80,746 levels. 

Updater Services is an integrated business services platform in India, providing both integrated facilities management (IFM) and business support services (BSS) with a nationwide presence. Within the BSS segment, the company offers audit and assurance services through its subsidiary, Matrix.

The company's service portfolio encompasses various sectors, including FMCG manufacturing, engineering, BFSI, healthcare, IT, automobiles, logistics and warehousing, airports, ports, infrastructure, and retail, among others.