[Update] Urban Company IPO: Issue Closes With 104X Oversubscription

Update | September 12, 19:30 IST

Urban Company’s IPO closed with an oversubscription of a whopping 103.63X. On the final day, the consumer services unicorn’s public issue received bids for 1,106.45 Cr shares against the 10.67 Cr shares on offer.

Qualified institutional buyers (QIBs) were the most bullish on the company’s public issue, oversubscribing their quota 140.2X. These investors placed bids for 814.39 Cr shares against the 5.81 Cr shares reserved for them. 

Meanwhile, non institutional investors (NIIs) oversubscribed their portion by 74.04X, bidding for 215.03 Cr shares against the 2.9 Cr shares on offer. 

Whereas, retail investors, who led the issue in the first day of the IPO oversubscribed their portion by 39.25X. These investors placed bids for about 76 Cr against the offered shares of 1.93 Cr. 

The employees of the Delhi NCR-based company bid for 1.03 Cr shares in the company against the 2.81 Lakh shares kept for them, resulting in a 36.79X oversubscription of their quota. 

Orignal | September 12, 11:38 IST

Continuing the momentum of the previous two days, Urban Company’s IPO was oversubscribed 15.3X at 11:09 on the last day of bidding today. The issue received bids for 164 Cr shares against 10.6 Cr shares on offer. 

Non-institutional investors (NIIs) showed the highest interest in the IPO, with the quota reserved for them oversubscribed 36X. The NIIs placed bids for 101.2 Cr shares against 2.9 Cr shares on offer. 

Following them were retail investors, who placed bids for 46.3 Cr shares against 1.9 Cr shares reserved for them. This translated to an oversubscription of 23.9X. 

The company’s employees also gave a warm response to the issue, placing bids for 49.2 Lakh shares against 2.8 Lakh shares on offer. Their portion was oversubscribed 17.5X.

Meanwhile, the quota for qualified institutional buyers (QIBs) saw a 2.4X subscription. The QIBs bid for 13.9 Cr equity shares in comparison to 5.8 Cr shares reserved for them.

Urban Company’s INR 1,900 Cr IPO will close later today, with its shares expected to list on the bourses on Wednesday (September 17).

The IPO comprises a fresh issue of INR 472 Cr and offer-for-sale (OFS) component of up to INR 1,428 Cr. Accel, Elevation Capital and Tiger Global are among the existing investors who are offloading their stakes via the OFS. 

While Accel will offload shares worth INR 433 Cr, Elevation Capital will sell INR 346 Cr worth of shares. Tiger Global will offload shares worth INR 303 Cr. 

The company has set a price band of INR 98 to INR 103 for the issue. At the upper end of the price band, Urban Company is seeking a valuation of INR 14,790 Cr (about $1.6 Bn). 

Urban Company plans to deploy the proceeds from the public issue to further enhance its tech stack, make lease payments for its offices, boost marketing activities and for other general purposes. 

Earlier this week, the company raised INR 853.9 Cr from anchor investors. It allotted 8.29 Cr equity shares to 59 anchor investors at an issue price of INR 103 apiece. These anchor investors include Goldman Sachs, Nippon India, ICICI Prudential, HDFC Mutual Fund, Aditya Birla Sun Life Trustee, Steadview Capital, Florida Retirement System, Motilal Oswal, among others. 

Urban Company is one of the early entrants in the home services online marketplace segment. It connects home services providers to its users. It is also gradually expanding its products and services. Earlier this year, it launched its home makeover service Revamp and 15-minute home maid service called Insta Help. 

Additionally, the company sells RO water purifiers and smart door locks under the native brand. 

On the financial front, the company reported a net profit of INR 239.7 Cr in FY25 as against a loss of INR 92.7 Cr in the previous year. Operating revenue jumped 38.2% to INR 1,144.4 Cr from INR 828 Cr in FY24.