IPO of Service Provider Firm to Open Next Week

Urban Company IPO has fixed a price band of Rs 98 to Rs 103 for its Rs 1900 crore IPO. The IPO will open on September 10 and close on September 12. The company plans to raise Rs 472 crore by selling new shares. Existing investors will sell stake worth Rs 1428 crore. Shares are at a premium in the grey market, which is expected to give good profits on listing

Mobile app-based beauty and home service platform Urban Company has announced the price band for its upcoming Rs 1,900 crore IPO. It has fixed a price band of Rs 98 to Rs 103 for its IPO. At the upper price of the price band, the valuation of the company has been estimated at Rs 14,790 crore.

Let us tell you that its IPO is still a week away from opening, but the premium of its shares is already indicating good profits in the grey market. The premium at which a company's stock is trading in the grey market or unlisted market is called the grey market premium or GMP.

When will the IPO open

Urban Company said in a statement on Wednesday that the IPO will open on September 10 and close on September 12. Big (anchor) investors can bid on September 9. The Gurugram-based company plans to raise Rs 472 crore by selling new shares. At the same time, its existing investors plan to sell stake worth Rs 1,428 crore.

Which big investors will sell shares

Under the Offer for Sale (OFS), Excel India and Elevation Capital, Bessemer India Capital Holdings II Limited, Internet Fund V Private Limited and VYC11 Limited will sell their shares. According to the company's statement, the money raised through the new issue will be used for new technology development and cloud infrastructure, marketing activities and general corporate work.

What is the current GMP?

According to Investorgain, the GMP of Urban Company's shares is Rs 10. Even if the final price of the shares in its IPO is fixed at Rs 103, according to the current GMP, its listing can happen at Rs 113 with a premium of about 10 percent.