Prosus says doubled stake in Urban Company in IPO before listing-day pop in share price
Prosus, which is most famous for its stake in Tencent, now owns 7.35% of Urban Company after adding about 4% for about ₹1,250 crore in the IPO.
Prosus NV doubled its stake in Urban Company Ltd. in the blockbuster IPO of the rent-a-service company, which saw a listing-day pop today.
“The demand for Urban Company has been so high,” Prosus India Ecosystem head Ashutosh Sharma told Bloomberg in an interview. “We wanted more allocation and could not get a lot more.”
The Amsterdam-based technology group, which is most famous for its stake in Tencent Holdings Ltd., now owns 7.35% of Urban Company after adding about 4% in the latest deal worth $139 million (about ₹1,250 crore).
Urban Company's share price surged as much as 74% in its trading debut on Wednesday, after raising ₹1,900 crore in India's most subscribed IPO so far this year. That pegged the company's market capitalisation at $2.8 billion.
To be sure, Urban Company's was the third IPO in India that Prosus took a part in over the past one year or so, Sharma said. The group has invested as much as $8.6 billion in India, and has stakes in several firms that are looking to come to Dalal Street.
Prosus expects to benefit from upside for Indian businesses with a local and consumer focus as the country faces steep US tariffs on its exports.
The Dutch company is hoping to replicate its blockbuster investment in China’s Tencent in 2001, when it paid $34 million for a 50% stake. Today, it owns 24% of the Chinese tech giant, which has a market cap of $759 billion. It’s made a number of big bets in e-commerce and most recently acquired online food delivery firm JustEat Takeaway.com in Europe.
