SBI Mutual Fund, Others Invest Nearly ₹500 Cr in Urban Company Ahead of IPO

SBI Mutual Fund, Acrobat Capital Fund 1, and two other firms have invested nearly ₹500 crore in Urban Company, the app-based beauty and home services marketplace which is set to open its initial public offering (IPO) next week.

According to a public announcement by Urban Company on Friday, SBI Mutual Fund and Acrobat Capital Fund invested funds on September 4, while Permira and Prosus infused money on August 24.

Urban Company received intimations from Tiger Global Management's affiliate, Internet Fund V Pte. Ltd, regarding the transfer of 31,419,735 equity shares, representing 2.14% of the company's pre-offer paid-up equity share capital on a fully diluted basis.

Of this, SBI Mutual Fund schemes, including Midcap Fund, Retirement Benefit Fund, Innovative Opportunities Fund, and Emergent India Fund, acquired shares worth ₹250 crore, while Acrobat Capital Fund purchased the remaining shares valued at ₹73.62 crore on September 4.

On August 24, Permira picked up Tiger Global's shares worth ₹87.6 crore, while Prosus bought a ₹87.1 crore stake from Accel.

All the shares were transferred at ₹103 apiece, aggregating to around ₹498 crore.

Overall, promoters Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan each hold around 9.77 crore shares acquired at negligible cost, with the value of their individual stakes now exceeding ₹1,000 crore.

Urban Company's ₹1,900-crore initial public offering (IPO) will open on September 10 and close on September 12, with a price band of ₹98 to ₹103 per share. At upper end, the company's valuation is pegged at ₹14,790 crore.

The Gurugram-based company plans to raise ₹472 crore through selling new shares and existing investors plan to sell stakes worth ₹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.

Urban Company operates a technology-driven, full-stack online market place for quality driven services and solutions across various home and beauty categories. Apart from India, it has presence in United Arab Emirates, Singapore, and Kingdom of Saudi Arabia.

Its platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skin care, hair grooming and massage therapy. These services are delivered by trained and independent service professionals at the consumers' convenience.