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What is the story about?
Shares of Urban Company are set to debut on the BSE and NSE at 10 am tomorrow, with analysts expecting a stellar listing at a premium of 40-50% to the issue price. Strong investor demand and favourable market sentiment are driving optimism around the stock.
The ₹1,900-crore public issue received robust subscription of 103.63 times during September 10-12.
Qualified institutional buyers subscribed 140.20 times their allotted quota, while non-institutional investors (high-net-worth individuals) subscribed 74.04 times. Retail investors bought 39.25 times their portion, and employees subscribed 36.79 times the reserved shares.
Although considered expensive from a valuation standpoint and launching in a relatively muted market environment, Urban Company's IPO witnessed strong demand. "Given the high subscription levels and positive sentiment, we expect a strong listing gain in the range of 40-50% or even higher, depending on market trends on listing day," said Prashanth Tapse of Mehta Equities.
He added that beyond the immediate listing pop, Urban Company offers a compelling long-term structural story and serves as a proxy for growing demand in the home services segment.
Accordingly, Tapse recommended that allotted investors hold the stock with a long-term view, while advising non-allottees to adopt a wait-and-watch approach for potential entry opportunities post-listing.
Urban Company GMP, other details
Ahead of the debut, shares were trading at a 50% premium in the grey market, an unofficial ecosystem where IPO shares change hands before listing.
The company priced its IPO in the fixed band of ₹98-103 per share, valuing it at ₹14,790 crore at the upper end.
Urban Company already raised ₹854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.
The IPO comprised a fresh issue worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. Key shareholders reducing stakes include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd.
The listing will provide partial exits to early backers such as Accel, Elevation, and Tiger Global. Proceeds from the fresh issue will be directed towards marketing initiatives and technology upgrades, according to the company's prospectus.
Company overview
Urban Company is a technology-driven, full-stack online services marketplace offering quality-focused solutions across 51 cities in India, UAE, and Singapore, with Saudi Arabia served through a JV.
Its platform enables customers to book services such as cleaning, pest control, plumbing, carpentry, electrical work, appliance repair, painting, skincare, grooming, massage therapy, and other home assistance, delivered by trained independent professionals.
The ₹1,900-crore public issue received robust subscription of 103.63 times during September 10-12.
Qualified institutional buyers subscribed 140.20 times their allotted quota, while non-institutional investors (high-net-worth individuals) subscribed 74.04 times. Retail investors bought 39.25 times their portion, and employees subscribed 36.79 times the reserved shares.
Although considered expensive from a valuation standpoint and launching in a relatively muted market environment, Urban Company's IPO witnessed strong demand. "Given the high subscription levels and positive sentiment, we expect a strong listing gain in the range of 40-50% or even higher, depending on market trends on listing day," said Prashanth Tapse of Mehta Equities.
He added that beyond the immediate listing pop, Urban Company offers a compelling long-term structural story and serves as a proxy for growing demand in the home services segment.
Accordingly, Tapse recommended that allotted investors hold the stock with a long-term view, while advising non-allottees to adopt a wait-and-watch approach for potential entry opportunities post-listing.
Urban Company GMP, other details
Ahead of the debut, shares were trading at a 50% premium in the grey market, an unofficial ecosystem where IPO shares change hands before listing.
The company priced its IPO in the fixed band of ₹98-103 per share, valuing it at ₹14,790 crore at the upper end.
Urban Company already raised ₹854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.
The IPO comprised a fresh issue worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. Key shareholders reducing stakes include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd.
The listing will provide partial exits to early backers such as Accel, Elevation, and Tiger Global. Proceeds from the fresh issue will be directed towards marketing initiatives and technology upgrades, according to the company's prospectus.
Company overview
Urban Company is a technology-driven, full-stack online services marketplace offering quality-focused solutions across 51 cities in India, UAE, and Singapore, with Saudi Arabia served through a JV.
Its platform enables customers to book services such as cleaning, pest control, plumbing, carpentry, electrical work, appliance repair, painting, skincare, grooming, massage therapy, and other home assistance, delivered by trained independent professionals.
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