Mumbai, September 13: Home services platform Urban Company’s Initial Public Offering (IPO) has closed with a staggering 103.6 times, despite analysts warning that the issue may not offer returns in the near term. Investor interest was evident on September 10, when the issue got oversubscribed 7x with bids for 136 million shares allocated for retail investors as against the 19 million shares reserved for them.The company’s Non Institutional Investors (NIIs) quote was oversubscribed 74.04 times, while the Qualified Institutional Buyers (QIBs) quota was subscribed 140 times during the issue.
The Grey Market Premium (GMP), an informal indicator of investor interest, showed a 33% premium on the issue price before the IPO opened. That’s now risen to almost 44.37% before the share’s listing on September 17.
Entering the same boat as Swiggy/Zomato
Though Urban Company hasn’t faced the same level of competition as similar platform-based companies like Zomato or Swiggy, intensified competition could take the company there sooner or later, warn analysts. The platform currently has over 14.5 million unique consumers, with almost 46% added in the last three years. Almost 54,000 professionals- cleaners, plumbers, electricians, beauticians, etc- use the platform regularly.
Urban Company has been an early entrant in the home services online marketplace, even expanding its offerings with its own range of RO water purifiers and smart door locks under the native brand. How this infusion of Rs.1900 crores through the issue will help the company maintain its position as the leading platform remains to be seen.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
