Urban Company IPO: A multi-bagger for PE investors as Accel India set to rake in 28.5x returns, Elevation Cap 19x

Urban Company IPO to open for public subscription on September 10. 

Urban Company’s Rs 1,900-crore initial public offering (IPO) will open for subscription on September 10 and close on September 12, with the anchor investor bidding scheduled for September 9.

The app-based beauty and home services platform Urban Company has fixed a price band of Rs 98–103 per share. At the upper end, the company’s valuation stands at Rs 14,790 crore.

Meanwhile, the early private equity investors are set to rake in substantial gains. Accel India IV, which holds 14.52 crore shares acquired at an average price of Rs 3.77, will see its stake value rise from Rs 55 crore to nearly Rs 1,500 crore — a return of about 28.5 times over 10.5 years, a Compound Annual Growth Rate (CAGR) of whopping 40 percent.

Urban Company’s promoters, PE investors sitting on massive windfall ahead of IPO

Elevation Capital, formerly SAIF Partners, owns 15.9 crore shares purchased at Rs 5.39 each. The investment, originally valued at Rs 85.7 crore, is now worth Rs 1,638 crore — nearly 19 times at about 30 percent CAGR.

Bessemer India Capital Holdings, with 9.47 crore shares bought at Rs 7.14, has seen its holding increase in value from Rs 68 crore to Rs 976 crore, around 13 times.

Internet Fund, which acquired 6.08 crore shares at Rs 61.65, has recorded an increase from Rs 375 crore to Rs 627 crore, a 67 per cent gain.

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According to platforms tracking the grey market activities, the shares of Urban Company are commanding a GMP of nearly 35 percent in the unofficial market. Investorgain quoted a GMP of Rs 35 for the shares of the company, indicating a listing gain of 33.98 percent.

Urban Company share allotment is expected to be finalised by September 15, and listing is scheduled for September 17 on the BSE and NSE.

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