Urban Company Secures ₹854 Crore from Anchor Investors Ahead of IPO
New Delhi – September 9, 2024 - Urban Company has raised ₹854 crore from anchor investors at ₹103 per share, the upper end of its initial public offering (IPO) price band, signaling strong institutional interest ahead of its market debut.
The company allocated 8.29 crore shares to prominent investors including SBI Fund, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life Insurance, SBI Life Insurance, Citigroup, and Goldman Sachs, among others.
Analysts highlight the IPO as an opportunity for investors to participate in India’s leading tech-enabled home and beauty services platform, noting its proven scalability across over 12,000 micro-markets in India and select international locations. The company’s hyperlocal model, coupled with investments in professional training, retention, and technology - including AI-driven recommendations and tools like ‘Native’ and ‘Co-pilot’ – are expected to strengthen its competitive advantage.
Urban Company has demonstrated robust financial growth, with revenue from operations increasing by 30% in FY24 and projected to rise 38% in FY25. The company also reported a net profit of ₹240 crore,indicating improved unit economics and operational leverage.
The IPO comprises a fresh issue of ₹472 crore and an offer-for-sale of ₹1,428 crore by existing investors. The price band has been set between ₹98 and ₹103 per share. At the upper price band, the IPO values Urban Company at a market capitalization of ₹14,790 crore, representing a market cap-to-sales multiple of 10x based on FY26E annualized earnings.
Mehta Equities suggests the valuation appears “fully priced” based on current financials, but believes the company may warrant a premium valuation compared to other Indian internet tech peers due to its stronger unit economics, premium service mix, and deeper supply-side integration.
Retail investors can apply for a minimum lot size of 145 shares, costing approximately ₹14,935 at the lower end of the price band. Employees are eligible for a ₹9 discount per share. Allotment for the IPO is scheduled for September 15, with listing on the BSE and NSE expected on September 17.
