Urban Company IPO GMP Rises 37% ahead of listing

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The Initial Public Offering (IPO) of Urban Company, an app-based platform for beauty and home services, is open for subscription from September 10 to September 12.

The price band has been set at ₹98 to ₹103 per share.

So far, the IPO has received strong demand and has been subscribed 2.34 times overall. Here’s the response from different investor categories:

Retail investors: Subscribed 5.91 times

Non-Institutional Investors (NII): Subscribed 2.86 times

Employees: Subscribed 5.54 times

This clearly shows a very strong response, especially from retail investors and employees.

IPO Details and Grey Market Premium (GMP)

Urban Company, headquartered in Gurugram, plans to raise ₹472 crore through fresh shares. At the same time, existing investors will sell shares worth about ₹1,428 crore via an Offer for Sale (OFS).

Key OFS participants include Excel India, Elevation Capital, Bessemer India Capital Holdings II Limited, Internet Fund V Private Limited, and VYC11 Limited.

The Grey Market Premium (GMP) of the IPO is rising steadily. Currently, it is up by 37%, which means the listing price could be nearly 37% higher than the upper end of the price band. The current GMP is at a premium of ₹38.5 per share.

Use of Funds and Business Expansion

The fresh capital raised will be used for:

Technology development

Cloud infrastructure

Office lease payments

Marketing and general corporate purposes

Urban Company is a technology-driven online marketplace focused on quality beauty and home services.

Beyond India, it also operates in UAE, Singapore, and Saudi Arabia, showing its growing international footprint.

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