Digital marketplace Urban Company is set to commence bidding for its IPO worth ₹1,900 crore from September 10. This includes a fresh issue of ₹472 crore and an offer for sale (OFS) of ₹1,428 crore. The company plans to utilize these funds for technology development, cloud infrastructure, marketing, and office expenses. Bidding for anchor investors will begin on September 9.
IPO Alert: Urban Company, a digital marketplace for home and beauty services, is launching its maiden IPO on September 10. The total IPO size is ₹1,900 crore, comprising a fresh issue of ₹472 crore and an offer for sale of ₹1,428 crore. The company will use these funds for the development of advanced technology and cloud infrastructure, office leases, marketing, and other corporate expenses. Bidding for anchor investors will commence on September 9.
Utilisation of Funds Raised from IPO
Urban Company has stated that the funds raised from the IPO will be used for the development of technology and cloud infrastructure. Additionally, these funds will be allocated towards office lease payments, marketing and brand promotion, and other corporate expenditures. The company believes this move will help strengthen its business and foster the development of new technologies.
IPO Preparations Complete with SEBI Approval
As part of this IPO, Urban Company is also offering an offer for sale (OFS) of ₹1,428 crore. Through this, existing investors will divest their stake. Investors participating in the OFS include Exl India, Elevation Capital, Bessemer India Capital Holdings II Limited, Internet Fund V Private Limited, and VYC11 Limited. The company has already secured approval for the IPO from SEBI.
Company Services and Expansion
Urban Company is a full-stack technology-driven online platform. It provides consumers with home and beauty-related services through a single app. The company's core services include home cleaning, pest control, plumbing, electrical work, carpentry, repair of electronic appliances, painting, skin care, hairstyling, and massage therapy.
All services are delivered to customers at their homes by trained and independent professionals. The company's presence is not limited to India; it is also active in the UAE, Singapore, and Saudi Arabia. The company's objective is to provide quality services and a professional experience to its customers.
Book-Running Lead Managers
Leading investment banks have been appointed as book-running lead managers for this IPO. These include Kotak Mahindra Capital Company, Morgan Stanley India, Goldman Sachs India Securities, and JM Financial. Their role is to collect applications from investors and ensure a smooth share allocation process.
Urban Company IPO: A New Investment Opportunity
Bidding for the Urban Company IPO will commence on September 10 for interested investors. Bidding for anchor investors opened on September 9. According to the company, this IPO will offer investors an opportunity to gain a stake in the rapidly growing digital platform for home and beauty services.
Experts suggest that investments in digital service platforms like Urban Company are increasingly attractive. Growing demand and service diversity make it an interesting option for investors.
