Urban Company IPO Fully Subscribed Hours After Opening for Bidding

The initial public offer of app-based beauty and home services platform Urban Company Ltd got fully subscribed hours after opening for bidding on Wednesday, with retail and non-institutional investors part also getting full subscription.

The IPO received bids for 13,54,38,410 shares against 10,67,73,244 shares on offer, translating into 1.27 times subscription, as per NSE data till 12:45 hours.

Retail Individual Investors (RIIs) part got subscribed 3.84 times and non non-institutional investors portion received 1.67 times subscription.

The Qualified Institutional Buyers (QIBs) category fetched a 20% subscription.

Urban Company on Tuesday raised ₹854 crore from anchor investors.

The company's ₹1,900 crore Initial Public Offering (IPO) will remain open for subscription till September 12 in the price band of ₹98-103 per share.

At the upper end of the price band, 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.

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.

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

Its 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.

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