Urban Company IPO: A look at its qualitative factors and financials from RHP

Urban Company IPO, which will conclude on September 12, is witnessing a positive response from investors, with the issue being fully subscribed within hours on the opening day.

The ₹1,900 crore initial public offering (IPO) aims to raise ₹472 crore through the issuance of new equity shares and ₹1,428 crore via the offer for sale component.

The company has set a price band of ₹98 to ₹103 per share, and a lot consists of 145 shares.

The app-based beauty and home services platform intends to use money raised through the fresh issuance for new technology development and cloud infrastructure, office lease payments, marketing activities, and corporate general purposes.

Urban Company IPO: Key qualitative factors

• In its red herring prospectus (RHP), Urban Company (formerly UrbanClap) said its multi-category, hyperlocal, home and beauty services marketplace benefits from network effects.
• The company has established its brand, which is trusted by consumers.
• It has improved the quality of service provided by its professionals through in-house training and access to tools and consumables.
• The wide scale of business and technological capabilities has helped Urban Company to enhance its profitability.
• The promoter-led company has a professional management team with an experienced board.

Urban Company IPO: Financials

Urban Company allows users to book services such as cleaning, plumbing, AC repair, beauty, salon and more from their phones. Apart from India, it has a presence in Singapore, the Kingdom of Saudi Arabia and the United Arab Emirates.

Goldman Sachs (India) Securities, Kotak Mahindra Capital Company, Morgan Stanley India Company, and JM Financial are the book-running lead managers to the issue. MUFG Intime India serves as the registrar.

The company's shares will be listed on the NSE and the BSE.