The initial public offering of app-based beauty and home services platform Urban Company Ltd received 9 times the subscription on the second day of bidding on Thursday.
The Rs 1,900-crore IPO received bids for over 96.14 crore (96,14,10,320) shares against 10.67 crore (10,67,73,244) shares on offer, according to NSE data.
The quota for non-institutional investors garnered 18.22 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 17.68 times. Qualified Institutional Buyers (QIBs) part received 1.48 times the subscription.
Urban Company on Tuesday raised Rs 854 crore from anchor investors.
Urban Company IPO size
The company’s Initial Public Offering (IPO) will remain open for subscription till Friday in the price band of Rs 98-103 per share.
At the upper end of the price band, the company’s valuation is pegged at Rs 14,790 crore.
The Gurugram-based company plans to raise Rs 472 crore through selling new shares, and existing investors plan to sell stakes worth Rs 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.
Urban Company’s business
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, electrical work, 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.
