Synopsis
Urban Company is set to launch its IPO. The price is between Rs 98 and Rs 103 per share. The company plans to raise Rs 1,900 crore. This will be through fresh equity and an offer for sale. Subscription opens on September 10 and closes on September 12. Anchor investor bidding is on September 9.
Urban Company has fixed the price band for its upcoming initial public offering (IPO) at Rs 98 to Rs 103 per share, aiming to raise Rs 1,900 crore through a mix of fresh equity issuance and an offer for sale by existing shareholders.
The IPO will open for subscription on Wednesday, September 10, and close on Friday, September 12. The anchor investor bidding window is scheduled for Tuesday, September 9.
The offer comprises a fresh issue of shares aggregating up to Rs 472 crore, while the remaining Rs 1,428 crore will be raised through an offer for sale. At the upper end of the price band, Urban Company’s implied post-issue market capitalization is estimated to be between Rs 14,095 crore and Rs 14,790 crore.
About Urban Company IPO
Urban Company’s IPO comprises a total issue size of Rs 1,900 crore, split between a fresh issue of Rs 472 crore and an offer for sale worth Rs 1,428 crore.
The face value of the equity shares is Rs 1 each. Investors can bid in lots of 145 shares and in multiples thereof. The price band for the issue has been set at Rs 98 to Rs 103 per share, with the lower and upper ends determining the final valuation.
The IPO is being managed by a consortium of lead managers, including Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial.
Investor Allocation for Urban Company IPO
The allocation structure for the IPO reserves 75% of the issue for Qualified Institutional Buyers (QIBs), amounting to approximately Rs 1,423.13 crore. Non-Institutional Investors (NIIs) are allocated 15% of the offer, or around Rs 284.62 crore.
This 15% is further divided between:
– Bidders investing between Rs 2 lakh and Rs 10 lakh: Rs 94.87 crore
– Bidders investing below Rs 2 lakh: Rs 189.75 crore
Retail investors will receive 10% of the offer, equivalent to Rs 189.75 crore. Additionally, employees have a reservation of up to Rs 2.5 crore and will be eligible for a discount of Rs 9 per share on the final issue price.
Book Building and Registrar for Urban Company IPO
The book-building process will be led by Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial. The registrar to the issue is MUFGL Intime India Pvt. Ltd.
The IPO is being launched under the 100% book-building process and will be listed on both the NSE and BSE.
Urban Company IPO Timeline
The basis of allotment is expected to be finalized on or around September 15. Equity shares will be credited to the demat accounts of successful applicants on September 16. The listing of Urban Company’s shares on the NSE and BSE is scheduled for on or around September 17.
Source: www.economictimes.indiatimes.com