SBI Mutual Fund invested ₹632 crore to acquire 4% stake in Urban Company via bulk deals, increasing its overall holding.
Early investors like Wellington, DF International and ABG Capital exited stakes following lock-in expiry, triggering large market transactions.
The stock surged sharply, hitting upper circuit levels, as the deal boosted investor sentiment despite heavy selling by existing shareholders.
SBI MF Picks Up ₹632-Cr Stake in Urban Company, Stock Hits Upper Circuit
The combined transaction, valued at around ₹632 crore, translates into an additional 4% stake in the company. As per shareholding data for the December quarter, SBI Mutual Fund had previously held a 1.89% stake in Urban Company, making this a notable step-up in its position
Urban Company
Summary
Advertisement
Shares of one-stop home services platform, Urban Company, surged on Wednesday after SBI Mutual Fund picked up a significant stake in the company through bulk deals on the stock exchanges.
SBI Mutual Fund purchased 3.51 crore shares on the NSE at an average price of ₹109.85 per share and an additional 2.25 crore shares on the BSE at ₹109.83 apiece.
The combined transaction, valued at around ₹632 crore, translates into an additional 4% stake in the company. As per shareholding data for the December quarter, SBI Mutual Fund had previously held a 1.89% stake in Urban Company, making this a notable step-up in its position.
The development sent Urban Company's stock soaring. The shares hit the 20% upper circuit intraday, touching a high of ₹131.44 on the NSE, before paring some gains to close 10.33% higher at ₹121.20. Meanwhile, the stock had opened 2.78% higher from its previous close of ₹109.85.
Advertisement
Early Investors Head for the Exit
The buying by SBI Mutual Fund was accompanied by notable selling from existing shareholders. ABG Capital offloaded 1.74 crore shares, representing a 1.2% equity stake, at ₹109.85 per share, while DF International Partners II fully exited its position, selling its entire 1.76 crore shares, a 1.22% stake, for ₹193.9 crore.
Wellington Management's investment arm, Wellington Hadley Harbor AIV Master Investors (Cayman) III, also sold 3.17 crore shares across two separate transactions, at prices ranging between ₹109.86 and ₹109.93 per share, amounting to a 2.2% stake worth ₹349.2 crore.
The bulk deal activity follows a key development on Tuesday, when nearly 94.1 crore shares, around 66% of Urban Company's outstanding equity, became eligible for trading after the expiry of a mandatory six-month shareholder lock-in period.
The expiry of the lock-in, however, does not necessarily mean shareholders will rush to sell in the open market.
Advertisement
A Loss-Making Quarter, But Growth on Track
Urban Company's latest financial results present a mixed picture. The Gurugram-based platform reported a net loss of ₹21 crore in the December quarter, reversing a profit of ₹232 crore in the same period last year, as heavy investments in its new high-frequency housekeeping business weighed on the bottom line.
On the revenue front, however, the company delivered solid growth, with revenue from operations rising 33% year-on-year to ₹383 crore. Net transaction value climbed 36% year-on-year to ₹1,081 crore, excluding Saudi Arabia. The company attributed the performance to festive season demand, steady customer retention, and expansion across India and international markets.