The ₹1,900 crore initial public offering (IPO) of home services marketplace Urban Company has drawn massive investor interest, getting subscribed 22.80 times by 12:30 pm on the third and final day of bidding, Friday, September 12. The issue closes for subscription later today.
According to stock exchange data, the IPO received bids for 243.39 crore shares against 10.67 crore shares on offer. Retail individual investors (RIIs) led the demand, subscribing 27.38 times their allotted quota, while non-institutional investors (NIIs) subscribed 43.95 times. Qualified institutional buyers (QIBs) booked their portion 10.69 times.
The Gurugram-based company has set the price band at ₹98-103 per share, valuing it at ₹14,790 crore at the upper end. Investors can bid for a minimum of 145 shares and in multiples thereafter.
In the grey market, Urban Company’s shares are trading at a premium of ₹45, implying a listing gain of nearly 44% over the issue price.
The IPO comprises a fresh issue of equity shares worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by early backers, including Accel India, Elevation Capital, Bessemer India, Internet Fund V Pte Ltd, and VYC11 Ltd. Proceeds from the fresh issue will be deployed for marketing and technology upgrades.
Founded in Gurugram, Urban Company operates in 51 cities across India, UAE, and Singapore, with a JV in Saudi Arabia. Its platform offers services ranging from home cleaning, pest control, plumbing, and appliance repair to grooming, skincare, and massage therapy, delivered by trained professionals.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are the book-running lead managers, while MUFG Intime India is the registrar.
