Urban Company secures Rs 854 Cr from anchor investors

Home services marketplace Urban Company has allocated shares worth Rs 853.87 crore ($97 million) to anchor investors ahead of its Rs 1,900 crore initial public offering (IPO).

The issue comprises a fresh issue of shares worth Rs 429 crore and an offer-for-sale (OFS) of Rs 1,471 crore by existing shareholders.

The board at Urban Company has passed a resolution to offer 8,29,00,485 equity shares at an issue price of Rs 103 (upper band) to its anchor investors, its regulatory filing accessed from stock exchanges show.

Global investors such as Goldman Sachs, Dragoneer Investments, Norges Bank, GIC, Nomura, Amundi Funds, Steadview Capital, and WhiteOak are among the key anchor investors in the Gurugram-based company.

Out of the total issue, 36.96% of the total allocation was made to 13 domestic mutual funds through 29 schemes, including SBI, HDFC, ICICI Prudential, Nippon, UTI, among others.

The IPO will open for subscription on September 10 and close on September 12, with a price band of Rs 98–103 per share with a minimum bid quantity of 145 equity shares.

In Urban Company’s Rs 1,900 crore IPO, early investors are set to reap hefty returns. Accel, holding a 10.51% stake, is expected to gain the highest at 28.5X, followed by Elevation (10.84% stake) at 19.1X and Bessemer Venture Partners at 14.4X.

For the fiscal year ending March 2025, the home service company reported a 38% surge in its operating revenue to Rs 1,144 crore. It also posted a profit before tax (PBT) of Rs 28.5 crore during the same period.