Urban Company Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise up to ₹1,900 crore through an initial public offering (IPO).
The IPO comprises a fresh issue of shares worth ₹429 crore and an Offer for Sale (OFS) of ₹1,471 crore by existing shareholders, including promoters, family members, Accel India IV (Mauritius) Ltd, Elevation Capital V Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd.
The company may also consider a pre-IPO placement of up to ₹85.8 crore. If completed, the fresh issue size will be reduced accordingly.
Utilisation of Fresh Issue Proceeds:
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Strategic investments and acquisitions
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Funding working capital requirements
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Investments in technology and innovation
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General corporate purposes
Company Overview: Founded in 2014 by Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan, Urban Company operates a technology-driven home services platform connecting trained professionals with consumers across services like beauty and wellness, home repairs, cleaning, and appliance servicing.
The company claims to have over 52,000 service professionals registered on its platform and presence across over 60 cities in India and select international markets such as the UAE, Saudi Arabia, and Singapore.
Urban Company reported:
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Revenue from operations of ₹640 crore in FY23
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Loss after tax of ₹308 crore in FY23
Lead Managers: Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are acting as Book Running Lead Managers (BRLMs) for the IPO.
MUFG Intime India Private Limited is the registrar to the issue.
Listing Plan: The shares are proposed to be listed on both BSE and NSE after receiving regulatory approvals.
Disclaimer: This article is for informational purposes only. Readers are advised to consult financial experts before making investment decisions.
