Urban Company IPO GMP has surged to nearly 45 percent as the issue continues to see strong subscription on the final day of initial share sale in the primary market on Friday.
According to platforms tracking the grey market activities, the shares of Urban Company are commanding a GMP of nearly 45 percent in the unregulated market. Investorgain quoted a GMP of Rs 45 for the shares of the company, indicating a listing gain of 43.69 percent.
The initial public offering of app-based beauty and home services platform received 103.63
times subscription on the final day of bidding on September 12. The Rs 1,900-crore IPO received bids for over 1,106-crore shares against 10.67-crore shares on offer, according to NSE data.
The quota for non-institutional investors garnered 74.04 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 39.25 times. Qualified Institutional Buyers (QIBs) part received 140.20 times subscription.
The company had a price band of Rs 98-103 per share. Earlier, the company raised Rs 854 crore from anchor investors.
Gaurav Garg, Lemonn Markets Desk, noted "The IPO has garnered strong investor confidence, positioning Urban Company among the most actively subscribed issues of the year."
"For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations."
At the upper end of the price band, the company's valuation is pegged at Rs 14,790 crore.
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 IPO shares will be listed on both NSE and BSE on September 17, while the allotment is expected by Monday, September 15.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
