Summary of this article
As of 1:00 PM on Day 2, Urban Company IPO was subscribed by over 6 times
Urban Company IPO is commanding a GMP of Rs 38, or 36.89 per cent
In the anchor round, 13 MF houses invested in Urban Company via their 29 different schemes
Urban Company’s Rs 1,900-crore initial public offering (IPO) is seeing strong demand from investors across categories. The public issue of the home and beauty services marketplace has been subscribed 5 times the shares on offer so far on the second day of bidding.
Urban Company IPO Subscription Status: Day 2
As of 2:48 PM on Day 2, Urban Company IPO received over 7.58 times overall subscription. The qualified institutional buyer (QIB) quota was booked 1.46 times, the non-institutional investor (NII) category saw 14.43 times booking, and the portion for retail investors was subscribed 15.61 times. The employee quota also received 11.40 times subscription.
Urban Company IPO GMP
Urban Company is currently showing a strong grey market premium (GMP) of Rs 38 over the issue price. The price band for the issue is Rs 98-103 and is being offered in lot sizes of 145 shares. Retail investors can apply with a minimum investment of Rs 14,935 per lot.
At the upper band price, Urban Company is expected to list at Rs 141 per share, representing a listing premium of 36.89 per cent.
Urban Company IPO Key Details
The three-day subscription window of the Urban Company IPO will close on September 12. Allotment of shares is set to be finalised by September 15 and shares are scheduled to debut on both the NSE and BSE on September 17.
Urban Company is a book-built issue of Rs 1,900 crore of 18.44 crore shares. Of this, 4.58 crore shares worth Rs 472 crore is fresh issue and 13.86 crore shares worth Rs 1,428 crore is offer for sale.
Of the total shares being offered, about 74.9 per cent has been set aside for QIBs, nearly 15 per cent for NIIs, 10 per cent for retail investors, and around 45 per cent of the QIB portion is reserved for anchor investors.
The book running lead manager of the issue is Kotak Mahindra Capital Co Ltd, and the registrar is MUFG Intime India Pvt Ltd.
Urban Company IPO Objective
Urban Company plans to use the Rs 472 crore net proceeds for various purposes. As per its red herring prospectus (RHP), the company will allocate Rs 190 crore for spending on new technology development and cloud infrastructure, Rs 75 crore for lease payments of its offices, Rs 90 crore for marketing, and the rest for general corporate purposes.
Urban Company IPO Anchor Investors
Ahead of the subscription window opening, Urban Company raised Rs 854 crore from anchor investors by allocating them a total of 82.90 million shares at Rs 103 per share. A total of 59 institutional investors participated in the anchor round, and of this, 13 domestic mutual fund houses invested in the company via their 29 different schemes.
SBI Mutual Fund led the anchor round with an investment of Rs 45 crore through its Midcap Fund and Innovative Opportunities Fund. ICICI Prudential followed with Rs 40 crore, invested via the Bharat Consumption Fund and the Exports & Services Fund. HDFC Mutual Fund deployed a total of Rs 40 crore across its Business Cycle, Innovation and Technology funds. Nippon India Small Cap Fund and Aditya Birla Sun Life Digital India Fund invested Rs 36 crore each.
UTI Mutual Fund together invested Rs 35.96 crore through six schemes, including the UTI Midcap Fund, UTI Small Cap Fund, UTI Innovation Fund, UTI Multi Cap Fund, UTI Balanced Advantage Fund and UTI India Consumer Fund.
Among others, Edelweiss, PGIM India and Bandhan Mutual Fund each invested close to Rs 14 crore. Edelweiss participated through its Aggressive Hybrid, Large Cap and Recently Listed IPO funds, while PGIM India invested through its Small Cap, Large and Mid Cap and Multi Cap funds. Bandhan invested through its Business Cycle Fund and Balanced Advantage Fund. Sundaram Mutual Fund also invested Rs 14 crore through its Business Cycle Fund.
Union Mutual Fund and Helios each invested about Rs 8.86 crore, while Mahindra Manulife contributed the same amount through its Aggressive Hybrid and Flexi Cap funds.
