Urban Company GMP indicates listing-day pop after 30X demand for IPO
Here's a look at the Urban Company IPO, in terms of its latest subscription status, grey market premium (GMP) and other key details.
The initial public offering of Urban Company Ltd. was subscribed nearly 30 times on the final day of share sale on robust demand from investors—small and large.
The retail portion, which is only 18% of the Urban Company IPO, was subscribed 29.43 times as of 1:09 pm on Friday, according to stock exchange data. Shares set aside for qualified institutional investors, more than half the IPO, was subscribed 19.25 times while the portion reserved for non-institutional investors was subscribed 51.80 times. Overall, the issue was subscribed 30.17 times.
Urban Company IPO GMP
According to InvestorGain, Urban Company’s grey market premium was at ₹45 as of 11:58 am on 12 September. That indicates a listing price of ₹148—a premium of 43.69% over and above the price band. The unlisted shares were trading at ₹140 when the IPO opened for subscription on Wednesday.
Urban Company IPO Details
Urban Company Ltd., formerly UrbanClap, has launched an IPO to raise as much as ₹1,900 crore by issuing shares in a price band of ₹98-103 apiece. That pegs the company's valuation at $1.7 billion (about ₹15,000 crore).
- IPO dates: 10-12 September
- Allotment date: 15 September
- Listing date: 17 September
- IPO size: ₹1,900 crore
- Issue size: ₹4.58 new shares
- Offer for sale: 13.86 crore shares
- Lot size: 145 shares or multiples thereof
On Tuesday, Urban Company raised ₹854 crore from marquee investors SBI Life Insurance and ICICI Prudential Life Insurance, among others, in an pre-IPO anchor placement. Existing shareholders and early backers, including Accel India and Elevation Capital, have offloaded shares worth ₹1,428 crore in the IPO.
Urban Company IPO: Analyst Take
At ₹98-103 apiece, the Urban Company IPO is “fairly priced” when compared with financial performance of rivals, Ishank Gupta, research analyst at Deven Choksey told Reuters.
Urban Company IPO: Company Profile
Urban Company, which offers services ranging from spas to plumbing repairs, rivals firms such as Housejoy and Sulekha. However, it mainly competes with unorganised and diverse regional players. The company turned profitable in the last financial year with revenue at ₹1,144 crore, a 38% rise year-on-year.
The company plans to use the IPO proceeds to develop new technology, invest in cloud space, marketing and for general corporate purposes.
IPOs In India
Indian startups, such as Lenskart and Meesho, are also looking to list their shares, in a bid to tap the world's second-largest IPO market. The companies hope to cash-in on growing demand and rising household incomes in the world's most populous country.
