Urban Company, the home services marketplace, has witnessed robust demand for its Initial Public Offering (IPO), achieving a 9-fold oversubscription as it entered the final day of the issue. The Rs 1,900 crore IPO has garnered significant attention across various investor categories, reflecting strong market confidence in the company's business model and growth prospects.

Subscription Details

The IPO, which consists of a fresh issue of Rs 472 crore and an offer for sale of Rs 1,428 crore, saw enthusiastic participation from different investor segments:

• Retail investors: 17.68 times oversubscribed
• Non-institutional investors: 18.22 times oversubscribed
• Qualified institutional buyers: 1.48 times oversubscribed

Grey Market Premium Indicates Strong Listing Potential

The grey market premium for Urban Company shares stands at Rs 37, representing a 35.9% premium over the upper price band of Rs 103. This suggests a potential listing price of around Rs 140, indicating positive investor sentiment and expectations of a strong market debut.

Financial Performance

Urban Company has demonstrated strong financial performance, with key highlights including:

• Revenue: Rs 1,144.50 crore (38% year-on-year growth)
• Profitability: Net profit of Rs 240.00 crore (including a Rs 211.00 crore deferred tax credit)

Valuation and Ratios

At the upper price band, Urban Company is valued at approximately Rs 14,800 crore, with the following key ratios:

Company Overview

Urban Company has established a significant presence in the home services market:

• Operations in 47 Indian cities
• International presence through joint ventures
• Serving over 14.5 million customers
• Network of 54,000 active service professionals

IPO Details

The strong oversubscription and positive grey market premium suggest that Urban Company's IPO has resonated well with investors across categories. As the company prepares for its market debut, all eyes will be on its listing performance and future growth trajectory in the competitive home services sector.

Urban Company, the home services marketplace, witnessed a robust response to its Initial Public Offering (IPO) on the first day of subscription. The Rs 1,900 crore IPO was fully subscribed within hours of its launch, highlighting strong investor interest in the company's growth story.

Subscription Details

By midday on the opening day, the IPO was booked 1.01 times overall, indicating a healthy demand across investor categories. Here's a breakdown of the subscription status:

• Retail Investors: Showed exceptional enthusiasm, with the retail portion being subscribed 3.02 times.
• Institutional Buyers: Displayed a more measured response, subscribing to 20% of their allocated portion.

IPO Structure and Pricing

The Urban Company IPO is structured as follows:

Price Band: Rs 98-103 per share

Grey Market Premium

The grey market is showing significant interest in Urban Company shares:

• Grey Market Premium: Rs 35
• Premium Percentage: 34% over the upper price band

This premium suggests strong investor confidence in the company's prospects.

Financial Highlights

Urban Company has demonstrated strong financial performance:

• Revenue: Rs 1,144.50 crore (38% year-on-year growth)
• Net Profit: Rs 240.00 crore (turned profitable)
  • Note: Rs 211.00 crore of the profit is attributed to deferred tax credit

Valuation

At the upper price band of Rs 103, Urban Company's valuation stands at:

• Market Capitalization: Rs 14,800.00 crore
• Price-to-Earnings (P/E) Ratio: 65.70 times

Market Position and Brokerage Views

Urban Company is positioned as a leader in the Rs 60 billion home services market in India. Despite the high valuations, several brokerages are recommending subscription to the IPO, particularly for long-term investors. The company's strong market position and growth potential are cited as key factors supporting these recommendations.

IPO Timeline

• Subscription Window: Closes on September 12
• Expected Listing Date: September 17

The strong first-day response to Urban Company's IPO reflects investor confidence in the home services sector and the company's business model. As the subscription window remains open, it will be interesting to see the final subscription figures and the performance of the stock upon listing.