Urban Company shares settled 64 percent higher from the issue price at Rs 169 per share on the NSE on the listing day on September 17.
The stock made a strong stock market debut to list at over 57 percent premium over its IPO price after the issue drew huge investor interest with 103.63 times subscription between September 10 and 12 in the primary market.
Shares of Rs 1,900-crore Urban Company IPO, an app-based beauty and home services platform, were listed at Rs 162.25 per share on the NSE, a premium of 57.52 percent over it's issue price. The company had set a price band of Rs 98 - 103 per share for its issue. The company's market capitalization post listing of shares stood at Rs 24,266.74 crore
On the BSE, the shares were listed at Rs 161 apiece, a premium of 56.31 percent.
Urban Company share listing on Wednesday was better than the expectations in the grey market, which had expected more than 52 percent listing gains in the secondary market. The company had earlier collected over Rs 854-crore from anchor investors.
Urban Company share listing: Should you buy, sell or hold?
Mehta Equities maintained a positive stance on the stock.
"Given the strong subscription and prevailing market sentiment, we expect listing gains in the range of 40-50 percent or higher, depending on conditions on listing day. Beyond the immediate upside, Urban Company represents a structural long-term story in the home services segment. We advise allotted investors to hold the stock, while non-allottees should adopt a ‘wait and watch’ approach to evaluate potential post-listing opportunities," said Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities.
Urban Company Share Listing Today: Experts recommend a post-listing strategy
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.
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.
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