Urban Company's IPO is opening for subscription from September 10. Even before this, demand for its shares has increased in the grey market, with the GMP reaching ₹28. The price band is ₹98-103 per share. The company will raise a total of ₹1,900 crore through the IPO, which includes ₹472 crore in fresh issue and ₹1,428 crore in OFS.
IPO NEWS: Urban Company, which operates as an online platform for home and beauty services, is opening its IPO for subscription from September 10. The price band has been set at ₹98-103, and the grey market premium has reached ₹28 per share. The company will raise a total of ₹1,900 crore through this IPO, which will be used for technology, cloud infrastructure, brand promotion, office leases, and other corporate expenses.
IPO Price Band and Potential Listing
The Urban Company IPO has been fixed at a price band of ₹98 to ₹103 per share. Adding the current grey market premium, the potential listing price is estimated to be around ₹136 per share. This means investors are likely to see a profit of approximately 27.18 percent on listing, assuming the market trend remains stable. This IPO will help the company raise a total capital of ₹1,900 crore.
Fresh Issue and OFS under IPO
This issue will include a total fresh issue of ₹472 crore, through which the company will issue new shares. The remaining ₹1,428 crore is an Offer for Sale (OFS), where existing investors will sell their shares. Thus, a portion of the funds raised from the IPO will be invested in the company's new plans and expansion, while the rest will provide liquidity to existing shareholders.
Lot Size and Minimum Investment
In Urban Company's IPO, retail investors will be allotted 145 shares in one lot, requiring a minimum bid of ₹14,935. Small non-institutional investors will receive 2,030 shares in 14 lots, requiring an investment of approximately ₹2 lakh. For large non-institutional investors, 9,715 shares will be allotted in 67 lots, requiring a minimum bid of ₹10 lakh.
Utilization of Funds Raised from IPO
Urban Company has clarified that the funds raised from the IPO will be utilized in several key areas. This includes building new technology and cloud infrastructure, office lease and rental expenses, investment in brand promotion and marketing activities, and other general corporate uses. The company aims to enhance the reach of its platform and the quality of its services through this capital.
Indications from Grey Market Premium
The grey market premium (GMP) for Urban Company's IPO has reached ₹28 per share. The grey market premium indicates the level of investor confidence in this IPO and their expectations for potential listing gains. If b demand persists during the IPO subscription, it could ensure good returns for investors on listing.
IPO, or Initial Public Offering, is the process by which a company sells its shares to the general public for the first time. It means the company transitions from private to public, and its shares are listed on stock exchanges like NSE or BSE. Through an IPO, a company raises capital, which is used for expansion, new technology, and branding. For investors, it is an opportunity to buy shares of the company at an early stage and benefit from potential listing gains.
