Unprecedented Investor Response
Urban Company’s IPO concluded its three-day public bidding window on September 12 with a massive oversubscription. Investors placed bids for more than 1,106 crore shares against just 10.67 crore on offer, resulting in an overall subscription of 103.63 times. The overwhelming response positions Urban Company among the most heavily subscribed IPOs in recent times.
Breakdown of Subscription Categories
Qualified Institutional Buyers led the surge in demand, subscribing 140.20 times to their portion. They placed bids for over 814 crore shares compared to 5.80 crore available. Non-Institutional Investors followed strongly with a 74.04 times subscription, bidding for 215 crore shares against 2.90 crore offered. Retail participation also remained robust, with subscriptions reaching 39.25 times, amounting to nearly 76 crore bids against 1.93 crore shares reserved for this segment.
Grey Market Premium Rises Ahead of Listing
Alongside strong demand, the IPO’s grey market premium jumped significantly. On the final day, the GMP rose to ₹54 per share from ₹43 the day before. With the IPO’s upper price band fixed at ₹103, shares are expected to list around ₹157, implying a potential premium of more than 52 percent on the listing date of September 17.
IPO Structure and Fund Utilization
The ₹1,900 crore issue comprises a fresh issue of ₹472 crore and an offer for sale worth ₹1,428 crore. The price band was set between ₹98 and ₹103 per share, with a lot size of 145 shares. The company intends to utilize the fresh proceeds to strengthen technology and cloud infrastructure, cover lease payments, expand marketing activities, and fund general corporate purposes.
Path to Market Debut
Urban Company’s IPO allotment is expected to take place on September 15, with listing scheduled on both BSE and NSE on September 17. The overwhelming subscription across categories combined with a rising GMP suggests that the listing is likely to generate strong gains for investors who secured allotments.
Why This IPO Stands Out
The company’s rapid growth in the home services sector, combined with its technology-driven platform, has built investor confidence. As more Indian households embrace app-based home services, Urban Company’s business model has proven resilient and scalable, making its market entry a highly anticipated event in the financial community.
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