[Update] Urban Company IPO: Issue Oversubscribed 9X On Day 2 

Update | September 11, 17:13 

Urban Company’s IPO continued to receive an overwhelming response on the second day of bidding, with the issue oversubscribed 9X at the end of the day. According to BSE data, the IPO received bids for 96.1 Cr shares against the total offering of 10.6 Cr shares.

The portion reserved for non-institutional investors (NIIs) surpassed that for retail investors in terms of oversubscription. The NIIs bid for 52.9 Cr shares as against 2.9 Cr shares reserved for them, translating to 18.2X subscription. 

Retail investors placed bids for 34.2 Cr shares against 1.9 Cr shares on offer, leading to oversubscription of 17.6X. 

The employee segment saw 13.4X subscription, with bids totalling 37.7 Lakh shares received against the 2.8 Lakh shares reserved.

Qualified institutional buyers (QIBs), who had subscribed 1.3X on Day 1, showed a relatively muted response on Day 2. This category received bids for 8.6 Cr shares against 5.8 Cr shares on offer, translating to 1.4X subscription.

Original | September 11, 12:31 

After a bumper start with 3.1X oversubscription on the first day, Urban Company’s IPO continued to see strong interest on Day 2 as well. The public issue was oversubscribed 4.8X at 11:30, receiving bids for 52 Cr shares against 10.6 Cr shares on offer.

Retail investors showed the highest interest, with the portion reserved for them seeing 11X subscription. They bid for 21.4 Cr shares as against 1.9 Cr shares on offer.

Following retail investors were employees and non-institutional investors (NIIs). The employee quota saw 8.8X subscription, with 25 Lakh bids placed against 2.8 Lakh shares on offer. The NII portion saw 8.2X subscription, getting bids for 23.8 Cr shares against 2.9 Cr shares reserved for them.

The qualified institutional buyers’ (QIBs) portion, which was subscribed 1.3X at the end of first day of bidding, saw its subscription remain stagnant. The QIBs placed bids for 7.6 Cr shares against 5.8 Cr shares allocated to them.

Urban Company’s INR 1,900 Cr IPO opened for subscription yesterday and will close tomorrow. The public issue comprises a fresh issue of up to INR 472 Cr and an OFS component of up to INR 1,428 Cr. 

The price band for the IPO has been set at INR 98 to INR 103. At the upper end of the issue price, the company will be valued at around INR 14,000 Cr (about $1.5 Bn). 

Earlier this week, the company raised INR 853.9 Cr in its anchor round. Shares of Urban Company are expected to list on the exchanges on Wednesday (September 17).

Urban Company started its operations in 2014 as a marketplace to connect home service professionals with customers. In 2023, it forayed into consumer electronics under the brand name ‘Native,’ selling water purifiers and smart door locks. It is also working on its own line up of air conditioners currently.

Earlier this year, it launched its 15-minute maid booking service Insta Help and home makeover offering Revamp. 

Urban Company plans to use the IPO proceeds for developing new technology and enhancing its cloud infrastructure, covering lease payments for office spaces, funding marketing activities, and supporting general corporate purposes.

The company turned profitable ahead of its IPO in FY25. It posted a net profit of INR 239.7 Cr as against a net loss of INR 92.7 Cr in the previous fiscal year. Operating revenue zoomed 38.2% to INR 1,144.4 Cr from INR 828 Cr in FY24.