Urban Company sets price band at ₹98-103 per share for ₹1,900 cr IPO

Investors can apply for a minimum of 145 equity shares and in multiples thereof. A discount of Rs 9 per share is being offered to eligible employees applying under the employee reservation portion

Online home and beauty services provider Urban Company on Wednesday fixed a price band of ₹98 to ₹103 per share for its upcoming ₹1,900 crore initial public offering (IPO). The IPO will be open for public subscription on September 10 and close on September 12. The bidding by anchor investors will take place on September 9.

 

Investors can apply for a minimum of 145 equity shares and in multiples thereof. A discount of ₹9 per share is being offered to eligible employees applying under the employee reservation portion.

 

The IPO comprises a fresh issue of ₹472 crore and an offer-for-sale (OFS) of ₹1,428 crore. The OFS includes ₹390 crore by Accel India IV, ₹173 crore by Bessemer India Capital Holdings, ₹346 crore by Elevation Capital V , ₹303 crore by Internet Fund V Pte, and ₹216 crore by VYC11.

 

From the net proceeds, the company plans to use ₹190 crore for new technology development and cloud infrastructure, ₹75 crore towards lease payments for its offices, and ₹90 crore for marketing initiatives.

 

Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs India, and JM Financial are the book-running lead managers (BRLMs) to the issue. 

 

Urban Company claims to have a base of 6.8 million transacting users in 51 cities across countries such as India, Singapore, and United Arab Emirates. In India, the company operates in 47 cities. The average number of monthly active service professionals stands at 47,833 individuals.  

 

In the 2024-25 (FY25), the company posted ₹1,144.5 crore in revenue from operations, a 38 per cent increase from ₹828 crore in FY24. Out of this, the Indian market contributed ₹881.4 crore, the international segment about ₹147 crore, and the native business ₹116 crore in FY25.

 

Native refers to the sale of products such as smart locks and water purifiers. 

 

The company posted a profit before tax of ₹28.8 crore in FY25 against a loss of ₹92.7 crore in the previous year. 

 

Abhiraj Singh Bhal, the company’s managing director and chief executive officer, said that service professionals on the platform end up earning ‘significantly better than entry level IT (Information Technology) and ITES (IT enablement services)’ employees. 

 

“If you are working more full time with us, by committing about 155 hours, which comes close to about seven and a half, eight hours a day out across 22 days (of 30 days), you get to about ₹49,066 (in earnings),” he said at a press conference. 

 

The company provides a range of services, including cleaning, pest control, electrical work, plumbing, carpentry, appliance servicing and repair, on-demand home-help assistance, painting, skincare, hair grooming, and massage therapy.

 

The firm utilises artificial intelligence (AI) to automate processes such as schedules, operations, among other things. 

 

“Even in our operations for example we use a host of AI bots which will work at scale to just automate the operations, schedule calls, help partners get automatically trained,” said Raghav Chandra, executive director and chief technology and product officer (CPTO) at the company. 

Going public 

-  The IPO is a mix of fresh issue ₹472 crore and OFS of ₹1,428 crore 

-  Investors can apply for a minimum of 145 equity shares and in multiples 

-  Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs India, and JM Financial are the book-running lead managers to the issue 

-  A discount of ₹ 9 per share is being offered to employees eligible under the employee reservation portion

 

With inputs from Sundar Sethuraman