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.

Urban Company, a leading home services platform, is gearing up for its Initial Public Offering (IPO) with growing enthusiasm in the grey market. The company's grey market premium has seen a significant uptick, more than doubling from ₹10 to ₹28 in just six days. This surge indicates potential listing gains of 27.18% over the proposed issue price of ₹103, reflecting strong investor interest ahead of the IPO launch.

IPO Details

The Urban Company IPO is scheduled to open for subscription from September 10 to September 12. The offering comprises:

• A fresh issue of ₹472 crore
• An offer for sale of ₹1,428 crore

Financial Performance

Urban Company has demonstrated robust financial growth:

• Revenue: ₹1,144 crore (38% year-over-year growth)
• Net Profit: ₹240 crore (including ₹211 crore deferred tax credit)
• Pre-tax Profit: ₹28 crore

Market Presence and Growth Potential

Urban Company has established a strong presence in the home services sector:

• Operations across 51 cities in India, UAE, and Singapore
• Completed over 97 million service orders to date

The Indian home services market presents significant growth opportunities:

Expert Opinions

Financial experts have weighed in on the Urban Company IPO:

• The IPO is priced at 12 times earnings, which some consider expensive for short-term investors
• However, it may be suitable for aggressive long-term investors due to the company's strong brand presence in the home services sector

Investor Considerations

Potential investors should note:

• The surge in grey market premium suggests high demand, but it's not a guaranteed indicator of post-listing performance
• The company's strong revenue growth and market presence are positive factors
• The profitability picture is complex, with a significant portion of net profit attributed to deferred tax credit

As Urban Company prepares to go public, investors will be closely watching its performance in the primary market and its potential to capitalize on the growing home services sector in India and beyond.