Urban Company initial public offering (IPO) is set to open for public subscription in the primary market shortly.
A host of domestic and foreign institutions participated in the anchor round a day earlier. As per the circular, the company has allocated 8.29 crore equity shares at Rs 103 per apiece to anchor investors comprising 59 funds. This takes the fundraising to Rs 854 crore.
Here are key things to know before you subscribe to the issue
1) Anchor investors: Urban Company raised Rs 854 crore from anchor investors, a day before its initial share-sale opening for public subscription.
2) Urban Company IPO Date: Rs 1,900-crore IPO will open for subscription during September 10-12.
3) Urban Company IPO Price Band: Price band has been fixed at Rs 98 to Rs 103 per share.
4) Company's market valuation: At the upper end of the price band, the company's valuation is pegged at Rs 14,790 crore.
5) Urban Company IPO Details: 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.
6) Objective: 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.
7) Urban Company IPO Allotment, Listing Details: The share allotment is expected to be finalised by September 15, and listing is scheduled for September 17 on the BSE and NSE.
8) Urban Company IPO GMP Today Price: According to platforms tracking the grey market activities, the shares of Urban Company are commanding a GMP of over 35 percent in the unregulated market. Investorgain quoted a GMP of Rs 36.5 for the shares of the company, indicating a listing gain of 35.44 percent.
9) Urban Company IPO: Should you subscribe? HDFC Securities in its note said, the revenue is principally generated from three streams, including platform service fees charged to consumers for service bookings, sale of tools and consumables to service professionals for service delivery and the sales of native products directly to consumer. The analysts at the brokerage further highlighted it's competitive strengths, saying the company operates its platform at a hyperlocal level, dividing each city into multiple micro markets typically spanning a 3-5 km radius. Across all locations, Urban Company operates over 12,000 such micro markets.
10) Key Concerns: The Company faces competition from traditional offline providers, niche online platforms, and new market entrants, both in India and internationally, which can impact market share, pricing, and margins. Rapid growth poses operational challenges such as maintaining platform quality, scaling offerings, geographic expansion, and managing resources without compromising service.
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