Urban Company IPO to open on September 10; institutional investors acquire Rs 854 crore shares via anchor book

Urban Company IPO to open on September 10

Urban Company, the online marketplace for home and beauty services, has garnered healthy interest from institutional investors who acquired Rs 853.87 crore worth shares via anchor book on September 9, a day prior to the IPO opening.

The company aims to raise Rs 1,900 crore via maiden public issue, of which Rs 472 crore will be raised via fresh issue component, while investors - Accel India, Elevation Capital, VY Capital, Bessemer India, and Internet Fund will be selling shares worth Rs 1,428 crore via offer-for-sale.

The offer will open for public subscription on September 10, and close on September 12. The price band for the issue is Rs 98-103 per share.

Urban Company in its filing to exchanges on Tuesday said it has finalised allocation of 8,29,00,485 equity shares to anchor investors at Rs 103 per share.

Marquee global investors like Citigroup Global, Goldman Sachs, Government of Singapore, Ashoka Whiteoak, Government Pension Fund Global, Nomura, Amundi Funds, Florida Retirement System, Steadview Capital, and Steinberg India became shareholders in the Gurugram-based company by investing via anchor book.

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Further, SBI Mutual Fund, ICICI Prudential MF, HDFC AMC, Fidelity, Nippon Life, Aditya Birla Sun Life AMC, UTI AMC, SBI Life, ICICI Prudential Insurance Company, Bajaj Allianz Life, Sundaram MF, Abakkus Asset Manager, Mahindra Manulife, Helios, Tata AIG General, Bandhan MF, Edelweiss, and PGIM India were among domestic institutional investors who also participated in the anchor book.

Urban Company that operates in 51 cities across India, United Arab Emirates, and Singapore will spend Rs 190 crore of net fresh issue proceeds for new technology development and cloud infrastructure. Further, Rs 75 crore will be spent for lease payments for the offices, Rs 90 crore for marketing, and the remainder for general corporate purposes.

The company, which enjoys valuation of Rs 14,790 crore, provides several services through its online platform including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming and massage therapy.

According to the Redseer report, the home services industry in India has a large market opportunity with a total addressable market of approximately $60 billion in FY25, which is expected to grow at a compounded annual growth rate of 10-11 percent and reaching $100 billion in FY30 driven by rising urbanisation and increasingly busy lifestyles.

The merchant banker managing the Urban Company IPO are Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial.