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.

Urban Company, the home services marketplace, has successfully raised Rs 854 crore from anchor investors ahead of its Initial Public Offering (IPO). This significant development marks a strong start to the company's public offering journey.

Anchor Investment Details

The company allocated 8.29 crore shares to anchor investors at Rs 103 per share, which represents the upper end of the IPO price band. This pre-IPO funding round attracted a diverse group of prominent investors, including:

• SBI Fund
• Monetary Authority of Singapore
• HDFC Mutual Fund
• Fidelity Securities
• Nomura
• ICICI Prudential Life
• SBI Life
• Citigroup
• Goldman Sachs

Company Overview and Performance

Urban Company operates across more than 12,000 micro-markets in India and select international locations. The company has demonstrated strong financial performance in recent years:

• Revenue growth of 30%
• Projected revenue growth of 38%
• A notable turnaround with a net profit of Rs 240 crore

IPO Details

The Urban Company IPO comprises two components:

1. Fresh issue: Rs 472 crore
2. Offer-for-sale by existing investors: Rs 1,428 crore

Price Band: Rs 98 - Rs 103 per share

At the upper price band of Rs 103, the company is seeking a market capitalization of Rs 14,790 crore. This valuation represents a market cap-to-sales multiple of 10x based on future projections.

Retail Investor Participation

Retail investors can participate in the IPO with a minimum lot size of 145 shares, which amounts to Rs 14,935 at the upper price band.

Key Dates

• IPO Allotment: Scheduled for September 15
• Listing: Set for September 17 on both BSE and NSE

The strong response from anchor investors suggests a positive outlook for Urban Company's IPO. However, potential investors should carefully consider the company's financials, growth prospects, and market conditions before making investment decisions.

Urban Company's IPO marks a significant milestone for the home services marketplace, reflecting its growth trajectory and market position. As the company prepares to go public, investors and market watchers will be keenly observing its performance and future prospects in the evolving service economy landscape.