Urban Company IPO ends with 3.13X subscription

New Delhi: The initial public offer of app-based beauty and home services platform Urban Company Ltd got fully subscribed hours after opening for bidding on Wednesday and later ended the day with 3.13 times subscription.

The IPO received bids for 33,37,87,825 shares against 10,67,73,244 shares on offer, translating into 3.13 times subscription, as per NSE data. Retail Individual Investors (RIIs) part got subscribed 7 times, and the non-institutional investors portion received 4.16 times subscription.

The Qualified Institutional Buyers (QIBs) category fetched 1.31 times subscription. Urban Company on Tuesday raised Rs 854 crore from anchor investors. The company’s Rs 1,900 crore Initial Public Offering (IPO) will remain open for subscription till September 12 in the price band of Rs 98-103 per share. At the upper end of the price band, the company’s valuation is pegged at Rs 14,790 crore.

The Gurugram-based company plans to raise Rs 472 crore through selling new shares, and existing investors plan to sell stakes worth Rs 1,428 crore. Those selling shares under the offer for sale (OFS) route are Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd and VYC11 Ltd.

The company plans to use funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.