Urban Company's ₹1,900cr IPO opens September 10: Everything we know
What's the story
Urban Company has announced the opening date for its ₹1,900 crore initial public offering (IPO). The subscription window will open on September 10 and close on September 12. The company plans to raise funds via a fresh equity issuance of up to ₹472 crore, and an Offer For Sale (OFS) component of ₹1,426 crore from existing shareholders.
Pricing strategy
Price band set at ₹98-103 per share
The price band for Urban Company's IPO has been set at ₹98-103 per share. Investors will have to bid for one lot of 145 shares and its multiples thereafter. To apply for one lot of Urban Company shares in the IPO, investors will have to invest a minimum of ₹14,935. The company's implied market cap comes up to around ₹14,095 crore to ₹14,790 crore based on this price band.
Investor distribution
IPO has reserved a portion for employees
For the upcoming IPO, 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the rest 10% for retail investors. Up to ₹2.5 crore of the offer is also reserved for eligible employees of Urban Company. The company's stocks will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Schedule overview
Shares likely to list on September 17
The bidding for anchor investors will be on September 9, while the basis of allotment will be finalized on or around September 15. The company's stocks are likely to list on the stock exchanges on September 17. Urban Company plans to use ₹190 crore from fresh share sale for funding new technological developments and cloud infrastructure, ₹75 crore for lease payments for offices, and ₹90 crore for marketing activities.