Urban Company’s ₹1,900-crore public offer is injecting fresh energy into India’s primary market, with its grey market premium climbing steadily in the run-up to subscriptions opening on 10 September.
In anticipation of the issue opening for subscriptions, the grey market premium commanded by the shares of Urban Company surged to ₹28-30, hinting towards possible listing gains of around 30%. This is over and above the company’s IPO price band of ₹98-103 per share. At the upper end of the band, the Gurugram-based firm is valued at ₹14,790 crore.
The offer, which will remain open for subscription from September 10-12, comprises a fresh issue of equity shares worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing shareholders. Marquee investors selling stakes under the OFS include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd and VYC11 Ltd.
Ahead of the subscription, Urban Company’s IPO will open bidding for anchor investors for a day on September 9.
The company plans to use funds raised through the public offer 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 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, skincare, hair grooming and massage therapy. These services are delivered by trained and independent service professionals at the consumers' convenience.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the issue.
