Urban Company IPO GMP: Urban Company IPO listing tomorrow, expected to debut at a straight 50% premium

News Topical, Digital Desk : Urban Company IPO GMP: Urban Company's shares will be listed on BSE and NSE tomorrow i.e. on 17th September at 10 am. Analysts estimate that its debut could be at a 40 to 50 percent premium over the issue price. Not only this, given the positive market sentiment and tremendous investor demand, the listing gain could be even higher.

The IPO got an excellent response from investors
This public issue of Rs 1,900 crore got an excellent response from investors. The issue, which ran from 10 to 12 September, got a total subscription of 103.63 times. In this, qualified institutional buyers (QIB) bought 140.20 times, non-institutional investors (HNI) 74.04 times, retail investors 39.25 times and employees bought 36.79 times the share.

Market expert Prashant Tapse (Mehta Equities) says that the valuation of the IPO is considered expensive and the market environment is also not very strong, despite this the subscription was excellent. In such a situation, a listing gain of 40 to 50 percent is expected. 

Urban Company IPO GMP Before the listing, Urban Company shares were trading at a 50 percent premium in the grey market as well. The company had fixed the price band of the IPO at Rs 98 per share to Rs 103 per share, which puts the company's valuation at Rs 14,790 crore at the upper level. 

Fresh issue of Rs 472 crore Through this IPO, the company has brought a fresh issue of Rs 472 crore and an offer for sale (OFS) of Rs 1,428 crore. In this, early investors like Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd and VYC11 Ltd are reducing their stake. Urban Company has already raised Rs 854 crore from anchor investors, which include SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity, Nomura, ICICI Prudential Life, SBI Life, Citigroup and Goldman Sachs. 

The company is operating in India, UAE and Singapore . The company has said that the amount raised from the fresh issue will be spent on marketing initiatives and technology upgrade. Urban Company currently operates in 51 cities in India, UAE and Singapore and is present in Saudi Arabia through joint ventures. On its platform, customers can book cleaning, pest control, plumbing, carpentry, electrical, painting, beauty, grooming, massage therapy and many other services. 
 

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