Urban Company's initial public offering is set to open for public bidding on September 10. Grey market estimates hint towards a decent listing for the home-services company.
The Rs 1,900-crore IPO will remain open for public bidding from September 10 to September 12 at a price band of Rs 98-103 per share. The issue comprises a fresh issue of Rs 472 crore shares and an offer-for-sale (OFS) worth Rs 1,428 crore.
Investors can bid for a minimum of 145 shares, requiring an investment of Rs 14,210 at the lower price band, and in multiples thereafter. The allotments will likely be finalized by September 15, and the shares of the company are scheduled to debut on stock markets on September 17.
Urban Company IPO GMP:
Ahead of listing, the unlisted shares of the company were trading at Rs 117.5 apiece, according to data on Investorgain. This implies a grey market premium (GMP) of a little more than 14 percent from the IPO price.
Founders and promoters Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan hold 6.65 percent stake each in Urban Company, and the remainder shares 80.05 percent shares are owned by several investors.
VY Capital is the largest public shareholder in the company with 11.8 percent stake, followed by Elevation Capital V (the former SAIF Partners India - 10.81 percent), Accel India (10.48 percent), Steadview Capital Mauritius (6.78 percent), and Naspers Ventures (6.78 percent).
Gurugram-headquartered Urban Company, which does not have comparable peer in the listed space, intends to use the fresh issue proceeds for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.
Capital markets regulator SEBI has cleared the Urban Company IPO papers on August 29. The company had filed draft papers with the regulator on April 28 this year.
Incorporated in 2014, Urban Company with operations in 51 cities across India, United Arab Emirates, and Singapore (excluding cities served by its joint venture in Kingdom of Saudi Arabia), provides various services including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming and massage therapy. Further, in last two years, it expanded into home solutions with the launch of water purifiers and electronic door locks under the brand name Native.
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