Urban Company IPO subscribed 83% so far on Day 1; check latest GMP

New Delhi: The initial public offer of app-based beauty and home services platform Urban Company Ltd got subscribed 83 per cent so far on the first day of bidding on Wednesday, with retail and non-institutional investors getting full subscription, within minutes of opening for share sale.

The IPO received bids for 8,85,21,050 shares against 10,67,73,244 shares on offer, as per NSE data till 11:27 hours.

Retail Individual Investors (RIIs) part got subscribed 2.45 times, and non non-institutional investors portion also received full subscription.

The Qualified Institutional Buyers (QIBs) category fetched 20 per cent subscription.

Urban Company IPO GMP Today

Urban Company IPO GMP is Rs 38. This indicates Urban Company's share price was trading at a premium of Rs 38 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Urban Company shares was indicated at Rs 145 apiece, which is 36.89% higher than the IPO price of Rs 103.

According to the activities observed in the grey market over the past nine sessions, today’s IPO GMP is trending upwards, and a robust listing is anticipated. The minimum GMP recorded is Rs 10.00, whereas the maximum GMP stands at Rs 38, as per experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Urban Company on Tuesday raised Rs 854 crore from anchor investors. The company's Rs 1,900-crore Initial Public Offering (IPO) will remain open for subscription till September 12 in the price band of Rs 98-103 per share.

At the upper end of the price band, the company's valuation is pegged at Rs 14,790 crore.

The Gurugram-based company plans to raise Rs 472 crore through selling new shares, and existing investors plan to sell stakes worth Rs 1,428 crore.

Those selling shares under the offer for sale (OFS) route are Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd and VYC11 Ltd.

The company plans to use funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.

Urban Company operates a technology-driven, full-stack online marketplace for quality-driven services and solutions across various home and beauty categories. Apart from India, it has a presence in the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia.

Its platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming and massage therapy.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the issue.