Urban Company IPO GMP jumps 28% as subscription opens tomorrow
What's the story
Urban Company will launch its IPO on Wednesday to raise ₹1,900 crore. Ahead of the IPO, the tech-driven online services marketplace has witnessed a surge in its gray market premium (GMP). The company's shares are currently trading at a GMP of around 34%, according to Investorgain. The price band for the maiden issue has been set at ₹98-103 per share. At the upper end of this band, Urban Company would be valued at ₹14,790 crore.
Share distribution
Fresh issue and OFS in Urban Company's IPO
The IPO consists of a fresh issue of equity shares worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. Investors can apply for a minimum of 145 shares and in multiples thereafter. Some of the major shareholders selling their stakes through the OFS include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd., and VYC11 Ltd.
Business expansion
India's largest home services platform
Founded in 2014 as UrbanClap, Urban Company has grown into India's largest home and beauty services platform. The company offers a wide range of services from facials to plumbing repairs. It competes with players like Housejoy and Sulekha but has scaled rapidly by tapping into the rising demand for professional services via smartphones.
Global reach
International expansion and listing timeline for Urban Company
Urban Company has also expanded internationally to the UAE, Saudi Arabia, and Singapore. However, India remains its core market accounting for nearly 90% of its revenue. The IPO allotment is likely to be finalized on September 15 with tentative listing on BSE and NSE scheduled for September 17. Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers for this issue.