Urban Company IPO: SBI MF, Prosus, Permira Step In as Tiger Global, Accel Trim Stakes

IPO-bound Urban Company has executed secondary share sales of nearly ₹500 crore. Several investors, including SBI Mutual Fund, Permira, Prosus, and Elevation Capital have purchased stakes from early backers like Tiger Global and Accel ₹103 per share, the upper end of the company’s price band, according to The Economic Times report.

The deal breakdown, as observed by ET, shows that Permira acquired Tiger Global’s shares worth ₹87.6 crore, while Prosus bought a ₹87.1 crore stake from Accel.

In addition, SBI Mutual Fund purchased shares worth ₹250 croer from Tiger Global across multiple schemes, including Midcap, Retirement Benefit, Innovative Opportunities and Emergent Global. Elevation Capital also picked up shares worth ₹73.6 crore from Tiger Global, the report said.

Together, the pre-IPO and post-RHP block trades amount to approximately ₹498 crore, which was executed at ₹103 per share. These deals value Urban Company at roughly ₹15,000 crore, closely matching the IPO’s projected post-issue market capitalisation of ₹14,095- ₹14,790 crore.

Urban Company IPO

The mobile app-based beauty and home services platform is set to roll out its ₹1,900-crore initial public offering (IPO) on September 10.

The company's public offer will conclude on September 12 and the bidding for anchor investors will open for a day on September 9, according to the red herring prospectus (RHP) filed on Tuesday.

The company plans to raise ₹472 crore through selling new shares and existing investors plan to sell stakes worth ₹1,428 crore, it showed.

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.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the issue. 

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 across United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia.

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