Urban Company IPO ends day 1 with 3.13 times subscription; Check details

The IPO of the app-based beauty and home services platform received bids for 33,37,87,825 shares, compared to 10,67,73,244 shares on offer, translating to 3.13 times subscription.

Retail Individual Investors (RIIs) subscribed 7 times, with the issue receiving bids for 13,54,99,310 shares against 1,93,62,244.

The non-institutional investors' category received 4.16 times the bids, with 12,08,40,970 subscriptions, compared to 2,90,43,367 shares for offer. Furthermore, the Qualified Institutional Buyers (QIBs) portion fetched 1.31 times the subscription, meaning QIBs bid for 7,58,21,660 shares, as against 5,80,86,735 reserved shares.

Urban Company IPO details

The company's IPO will remain open for subscription from September 10 to September 12.

Urban Company raised ₹854 crore from anchor investors, including the Government Pension Fund Global, Fidelity Funds, Nomura Funds Ireland Public Limited Company, Florida Retirement System, among others, on Tuesday, September 9.

Furthermore, it has a price band of ₹98-103 per share. At the upper end of the price band, the company's valuation is pegged at ₹14,790 crore.

The company has reserved 75% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Additionally, IPO’s lot consists of 145 shares and multiples thereof.

It is a mix of fresh issuance of shares aggregating to ₹472 crore and an offer for sale (OFS) of ₹1,428 crore, with the total issue size aggregating to ₹1,900 crore.

Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, and VYC11 Ltd are shares under the offer for sale (OFS) route.

The company plans to use the funds raised via the IPO towards new technology and cloud infrastructure (₹190 crore), lease payments for offices (₹75 crore), marketing activities (₹90 crore), and the remaining for general corporate purposes.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are the book-running lead managers of the IPO.

Urban Company connects individuals with trained professionals for different services. It operates in 51 cities across India, the United Arab Emirates, and Singapore. The home services provider allows customers to book services like cleaning, electricians, pest control, carpentry, home-help assistance, appliance servicing and repair, plumbing, hair grooming, skincare, massage therapy, and more.