The initial public offering (IPO) of app-based beauty and home services platform Urban Company Ltd received an overwhelming investor response, getting subscribed 103.63 times on the final day of bidding on Friday. The `1,900-crore issue received bids for 11,06,46,08,960 shares against 10,67,73,244 shares on offer, according to NSE data.
The Qualified Institutional Buyers (QIBs) segment was subscribed 140.20 times, the non-institutional investors portion 74.04 times, while the Retail Individual Investors (RIIs) part received 39.25 times subscription. Ahead of the IPO, Urban Company raised 854 crore from anchor investors. The price band for the issue was Rs 98-103 per share, valuing the company at 14,790 crore at the upper end.
Urban Company’s plans for the capital raised
Urban Company plans to deploy funds raised from the fresh issuance towards new technology development, cloud infrastructure, office lease payments, marketing, and general corporate purposes.
The startup operates a technology-driven, full-stack marketplace offering services across home and beauty categories, including cleaning, pest control, electrical work, plumbing, carpentry, appliance repair, painting, skincare, hair grooming, and massage therapy. Apart from India, it has a presence in the UAE, Singapore, and Saudi Arabia, connecting consumers with quality service providers through its app.
International interest in IPO
The IPO attracted strong interest from both domestic and foreign institutional investors, with participation from large global funds such as Norges Bank Investment Management, Fidelity, Nomura Holdings, and Amundi SA.
Kotak Mahindra Capital Company, Morgan Stanley India, Goldman Sachs (India) Securities, and JM Financial were the book-running lead managers for the issue.
The oversubscription underscores robust investor appetite for IPOs in India, which has emerged as one of the world’s most active markets for new listings, even as competition intensifies from other global markets such as Hong Kong.