Urban Company Secures โน854 Croreโ fromโข Anchorโฃ Investors Ahead of โIPO
New Delhi – September 9, 2024 โ -โข Urban Companyโฃ has raised โน854 crore from anchor investors at โน103 per โshare, the upper end of its initial public offering (IPO)โข price band, signalingโค strong institutional โinterest ahead of its market debut.
Theโข company allocated 8.29 crore shares โขtoโฃ prominent investors including SBI Fund, Monetary Authority of โขSingapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life Insurance, โSBI Life Insurance, Citigroup, and Goldman Sachs,โค among others.
Analysts highlight the IPO as an opportunity โคfor investors โto participate in India’s leading tech-enabled home and beautyโ services platform, noting its provenโ scalability across overโค 12,000 micro-markets in India and select international locations. The company’s hyperlocal model, coupled with investments in professional training, โretention, and technology โข- including AI-driven recommendations and tools likeโข ‘Native’ and ‘Co-pilot’ – are expected to strengthen its โฃcompetitive advantage.
Urbanโ Company has demonstrated โrobust financial growth, with revenue from operationsโข increasing โฃby 30% in FY24โข andโค projectedโค toโฃ rise 38%โ in FY25. The company also reported a net profit of โน240 crore,indicating improved โคunit economics and operational leverage.
The IPO comprises a freshโ issue of โน472 crore โand โan offer-for-saleโฃ of โน1,428 โฃcrore by existing investors. The price bandโฃ has been set between โน98 and โน103 perโค share. At โthe upper price band, the IPO values Urban Company atโข a market capitalization of โน14,790โค crore, representing a market cap-to-sales multiple of 10x based on FY26E annualized earnings.
Mehta โฃEquities suggestsโ the valuationโ appears “fully priced” โคbased on current financials, but believes theโ companyโข may warrant a premium valuation โคcompared to other Indian internet tech peers due toโข itsโฃ stronger โฃunit economics, premiumโ service mix, and deeper โsupply-side integration.
Retail investorsโ can apply โfor a minimumโข lot size of 145 shares, โฃcosting approximately โน14,935 at โคthe lower endโข of โtheโ price band. โEmployees are โขeligible for a โน9 โdiscount per share. Allotment โfor the IPOโฃ is scheduled for September 15, โwith listing on theโข BSE and NSE expectedโข on September 17.