Urban Company IPO Opens with Rs 98-103 Price Band, Aiming to Raise ₹1,900 Crore

Strategic Insights -

Urban Company is set to make its public market debut through an initial public offering (IPO), aiming to raise ₹1,900 crore. The IPO price has been fixed at ₹98 to ₹103 per share, with the mainboard issue subscription opening on September 10 and closing on September 12. The company plans to use the funds to deploy ₹190 crore in new technological development and cloud infrastructure, ₹75 crore in lease payments, and ₹90 crore in marketing activities.

Key Takeaways:

  • Urban Company aims to raise ₹1,900 crore through its IPO, with the IPO price fixed at ₹98 to ₹103 per share.
  • The company plans to deploy ₹190 crore in new technological development and cloud infrastructure, ₹75 crore in lease payments, and ₹90 crore in marketing activities.
  • The IPO will be a fresh issue of 472 crore worth of shares and an offer of sale (OFS) of 1428 crore by existing shareholders.
  • Qualified Institutional Buyers (QIBs) are allocated 75% of the issue, Non-Institutional Investors (NIIs) allocated 15% of the issue, and retail investors allocated about 189.75 crore.
  • Eligible employees are entitled to a ceiling of up to ₹2.5 crore, with a discount of ₹9 per share on the final issue price reserved.

Statistics:

  • The implied post-issue market capitalization of Urban Company is estimated between ₹14,095 crore and ₹14,790 crore.
  • The IPO will be book-built at 100 percent, with Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial as the lead managers.
  • Allotment is likely to be based on or about September 15, and the shares are credited to the demat account of successful applicants on September 16.

Sources:

  • Urban Company IPO prospectus
  • investorgain.com (grey market premium)
  • Contify.com (IPO details)