Urban Company IPO to Raise ₹1,900 Crore With Subscription From Sept 10

Urban Company is set to make its public market debut through an initial public offering (IPO), aiming to raise ₹1,900 crore. The IPO price has been fixed at ₹98 to ₹103 per share. The mainboard issue subscription opens on Wednesday, September 10, and closes on Friday, September 12, and anchor investor bidding will be held a day before, on September 9.

The IPO will be a fresh issue of ₹472 crore worth of shares and an offer of sale (OFS) of ₹1428 crore by existing shareholders. At the top of the price band, the implied post-issue market capitalization of Urban Company is estimated between ₹14,095 crore and ₹14,790 crore.

Investor Allocation and Application Details

Investors can apply for the IPO in lots of 145 shares and in multiples thereof, i.e., retail investors need to invest at least ₹14,935 for one lot. It is divided into 3 groups: Qualified Institutional Buyers (QIBs) who are allocated 75% of the issue, which is approximately. ₹1,423.13 crore; Non-Institutional Investors (NIIs) allocated 15% of the issue, which is about ₹284.62 crore; and retail investors, which is about ₹189.75 crore. Eligible employees are entitled to a ceiling of up to ₹2.5 crore, out of which a discount of ₹9 per share on the final issue price is reserved.

The proceeds of the fresh issue, Urban Company intends to deploy ₹190 crore in new technological development and cloud infrastructure, ₹75 crore in lease payments, ₹90 crore in marketing activities, and the rest in general corporate purposes.

Book-Building and Listing

Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial are the lead managers in an IPO that is being book-built at 100 percent. The issue registrar is MUFGL Intime India Pvt. Ltd. Allotment is likely to be based on or about September 15, and the shares are credited to the demat account of successful applicants on September 16. It will list on the NSE and BSE on September 17.

Urban Company Overview

Urban Company provides a complete online services marketplace offering home and beauty services in India, the UAE, and Singapore. It serves 51 cities and enables consumers to book services (cleaning, pest control, electrician, plumbing, carpentry, appliance repair, painting, skincare, hair grooming, massage therapy, and on-demand home help) all delivered by trained independent service professionals.

Market Views for Urban Company's IPO GMP

As per investorgain.com, the Urban Company IPO grey market premium (GMP) stands at ₹10, indicating positive investor sentiment and a willingness to pay above the issue price.

This IPO marks a key milestone for Urban Company as it seeks to expand its platform, invest in technology, and scale its services to meet growing consumer demand.