Urban Company's ₹1,900 crore IPO to open on Wednesday; Here is all you need to know

Urban Company price band and lot size

Urban Company, the technology platform which connects customers with trained home service professionals for services like beauty, spa, plumbing, carpentry, and appliance repair through its website and mobile app is planning to sell shares in the price band of ₹98-103 per share and a retail investor can bid for minimum one lot of 145 shares up to maximum of 13 lots.

At the upper end of the price band, one lot of Urban Company shares is priced at ₹14,935 in the IPO.

The company has reserved 75% shares in the IPO for large investors like mutual funds, banks, foreign institutional investors (FIIs), and insurance companies, which fall under the category of Qualified Institutional Buyers (QIBs). 10% shares in the IPO are reserved for retail investors, and 15% shares are reserved for non-institutional investors.

Under the OFS, Accel India IV (Mauritius) Ltd, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, VYC11 Ltd, and Elevation Capital V Ltd will offload their stake.

Urban Company IPO objective

The fresh issue proceeds of the mobile app-based beauty and home care services provider will be used for expenditure for new technology development and cloud infrastructure, lease payment for offices, marketing activities, and general corporate purposes.

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

Urban Company pre-IPO placement

SBI Mutual Fund, Acrobat Capital Fund 1, and two other firms have invested nearly ₹500 crore in Urban Company ahead of its IPO.

According to a public announcement by Urban Company on Friday, SBI Mutual Fund and Acrobat Capital Fund invested funds on September 4, while Permira and Prosus infused money on August 24.

Urban Company received intimations from Tiger Global Management's affiliate, Internet Fund V Pte. Ltd, regarding the transfer of 31,419,735 equity shares, representing 2.14% of the company's pre-offer paid-up equity share capital on a fully diluted basis.

Of this, SBI Mutual Fund schemes, including Midcap Fund, Retirement Benefit Fund, Innovative Opportunities Fund, and Emergent India Fund, acquired shares worth ₹250 crore, while Acrobat Capital Fund purchased the remaining shares valued at ₹73.62 crore on September 4.

On August 24, Permira picked up Tiger Global's shares worth ₹87.6 crore, while Prosus bought a ₹87.1 crore stake from Accel.

All the shares were transferred at ₹103 apiece, aggregating to around ₹498 crore.

Urban Company IPO GMP

According to investorgain.com and media reports, the unlisted shares of Urban Company are trading at ₹30.5 per share. It reflects a listing price of ₹133.5 apiece at a premium of 29.61% on the upper limit of the price band.