Urban Company's IPO witnesses strong demand, retail portion fully booked
What's the story
Urban Company, a leading at-home services platform, has witnessed a strong response to its IPO. The retail portion of the company's ₹1,900 crore public issue was oversubscribed 1.3x at 10:45am, receiving bids for 2.6 crore shares against 1.9 crore shares reserved for them. The employee portion of the IPO was also oversubscribed. QIBs subscribed 20% of their allocation, while NIIs bid for 80% of their shares. At the time of writing, the GMP for the issue stood at 37%.
Offer details
Price band values Urban Company at ₹15,000cr
Urban Company has fixed a price band of ₹98-103 per share for its IPO. The public issue values the company at around ₹15,000 crore at the upper end of the range. It consists of a fresh issue worth ₹472 crore and a ₹1,428 crore-worth offer for sale by investors Accel, Elevation Capital, Tiger Global, Vy Capital and Bessemer Venture Partners. The IPO will close on September 12 and the shares are expected to list on the exchanges on September 17.
Investor backing
Urban Company raised ₹854 crore from anchor investors
Prior to the public issue, Urban Company raised ₹854 crore from anchor investors such as Singapore's sovereign wealth fund GIC, Fidelity, Norges Bank among others. The company also completed a ₹500-crore secondary sale last week. SBI Mutual Fund and Permira (new investors) purchased shares at ₹103 each from early investors Tiger Global and Accel. Existing investors Prosus and Elevation Capital also increased their stakes ahead of the IPO.
Company profile
Operating revenue grew by 38% in FY25
Founded in 2014, Urban Company operates in two main segments: beauty and wellness and home repairs and maintenance. The first segment includes salon services, spa treatments, laser hair reduction while the second one offers plumbing, electrical work, carpentry, cleaning, pest control, appliance repair, painting, etc. The company's operating revenue grew by 38% to ₹1,144 crore in FY25 with a net profit of ₹240 crore against a loss of ₹93 crore in FY24.