US investor Excel has seen substantial returns from Urban Company's IPO. The company made an initial investment of ₹3.77 per share, which it sold for ₹103, yielding a profit of approximately 27 times. The shares opened at a premium of over 56% during the IPO listing, and the company's valuation reached ₹24,000 crore.
Urban Company IPO: Urban Company's IPO was listed on the stock market on Wednesday, providing US investor Excel with a significant profit opportunity. Excel had invested at an early stage at a price of ₹3.77 per share and achieved a 27-fold return by selling them at ₹103 per share in the IPO. The IPO share price was ₹103, while the shares opened at ₹161 on listing, resulting in a premium of over 56%. The company's current market valuation is approximately ₹24,000 crore.
Excel Company's Significant Earnings
Excel, one of Urban Company's early investors, reduced its stake by selling shares acquired at ₹3.77 per share for ₹103 each. This means the company has achieved approximately a 27-fold return on this stake. The pre-IPO valuation of the initial investment was ₹14.3 crore, while through the IPO, this value increased to ₹390 crore.
Excel had invested a total of ₹55 crore in Urban Company, acquiring 14.56 crore shares. After the IPO, it has now realized profits from its stake by selling shares worth ₹390 crore. Despite this, it still holds shares valued at over ₹1,100 crore.
Substantial Earnings Before Facebook Too
This is not the first time Excel has seen huge returns from an IPO. In 2012, the firm achieved an 800-fold return from Facebook's IPO. The exit from Urban Company has strengthened Excel's portfolio. Additionally, the firm has invested in other unlisted companies in India such as Acko and Cult.fit.
Urban Company IPO Size and Subscription
Urban Company's IPO received an overwhelming response from investors, being subscribed 103.6 times. The IPO included a fresh issue of ₹472 crore and an offer for sale (OFS) of ₹1,428 crore. Institutional investors such as Bessemer India Capital, Elevation Capital, and Tiger Global also reduced their stakes.
The company recently turned profitable. In FY25, Urban Company reported a net profit of ₹240 crore, compared to a loss of ₹93 crore a year earlier. During the same period, the company's revenue increased by 36 percent to ₹1,261 crore.
Strong Share Listing
Urban Company's listing on the stock market was spectacular. The issue price was ₹103, while the shares opened at ₹161 on listing, signifying a premium of over 56 percent. At 1:25 PM on BSE, the shares were trading at ₹166.65, approximately 62 percent higher than the issue price. At this time, the company's total valuation is around ₹24,000 crore.
Significant Opportunity for Early Investors
Urban Company's IPO has provided excellent returns to early investors. Companies like Excel invested long ago and have now exited their stakes with substantial profits. This serves as an example for investors that early-stage investments can prove to be extremely beneficial in the long run.
