Urban Company IPO Bids Surge, Issue Subscribed 3.13 Times
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The IPO of app-based home and beauty services platform Urban Company Ltd was oversubscribed a few hours after the bidding process opened and eventually closed at the end of the day with 3.13 subscriptions.
IPO was bid at 33, 37, 87,825 shares as compared to the 10,67,73,244 shares on offer, and this translates to 3.13 times subscriptions, according to the NSE data.
Retail Individual Investors (RIIs) part was subscribed 7 times and the non-institutional investors portion was subscribed 4.16 times.
The Qualified Institutional Buyers (QIBs) category fetched 1.31 times subscription. Urban Company on Tuesday raised Rs.854 crore from anchor investors.
The company's Rs.1,900 crore Initial Public Offering (IPO) will remain open for subscription till September 12 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.
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.
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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.
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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.
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Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the issue.