Urban Company IPO gets subscribed over 103 times on 3rd day, led by strong demand from NII, QIB

Urban Company IPO gets subscribed 83 times on 3rd day, led by strong demand from NII, retail

The initial public offering of app-based beauty and home services platform Urban Company Ltd received over 103 times subscription on the third day of bidding on September 12.

The Rs 1,900-crore IPO received bids for 1,106 crore (11,06,46,08,815 ) shares against 10.67 crore (10,67,73,244) shares on offer, according to NSE data.

The quota for non-institutional investors garnered 74 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 39.25 times. Qualified Institutional Buyers (QIBs) part received 140 times subscription.

Urban Company on Tuesday raised Rs 854 crore from anchor investors.

The company's Initial Public Offering (IPO) will remain open for subscription till Friday in the price band of Rs 98-103 per share.

At the upper end of the price band, the company's valuation is pegged at Rs 14,790 crore.

The Gurugram-based company plans to raise Rs 472 crore through selling new shares, and existing investors plan to sell stakes worth Rs 1,428 crore.

Those selling shares under the offer for sale (OFS) route are Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd and VYC11 Ltd.

The company plans to use funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.

Urban Company operates a technology-driven, full-stack online marketplace for quality-driven services and solutions across various home and beauty categories. Apart from India, it has a presence in the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia.

Its platform enables consumers to easily order services, including cleaning, pest control, electrical work, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.

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