Gurugram based Household Services Company Urban Company files DRHP with SEBI for the proposed IPO; Key Details here

Urban Company is into Consumer Household Services and is looking raise funds through Fresh Issue and Offer For Sale

Urban CompanyIPO: Fresh Issue of Equity shares aggregating up to Rs.429 crores. Offer for Sale of Equity shares aggregating up to Rs.1471 crores IPO

Urban Company IPO: Urban Company Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 1 per share via initial public offering.

Promoters of Urban Company are Abhiraj Singh Bhal, Raghav Chandra and Varun Khaitan and holds 59.88% stake in the company.

Key Details:

• Initial Public Offer comprising of a Fresh Issue of Equity Shares aggregating up to Rs. 429 crores and an Offer for Sale of Equity shares aggregating up to Rs1,471 crores..
• Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), JM Financial have been appointed as lead merchant bankers for the proposed IPO.
• It has appointed MUFG Intime India Pvt. Ltd. as Registrar and Share transfer Agent.
• Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 429 Crs andby Promoters are not offloading Equity share inthe OFS. OFS consists of Investors selling shareholders...

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Objects of the issue:
1) Expenditure for new technology Rs190 crores, 2) Expenditure on lease payments of offices Rs70 crores, 3) Marketing spends Rs80 crores and 4) Other corporate purpose.

About Company:
Established in 2014, by Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan. It operates as a technology-driven, full-stack online marketplace for home and beauty services. Company also sells water purifiers, smart locks under its own brand 'Native'. Company is present in 59 cities across four countries, namely, India, United Arab Emirates (“UAE”), Singapore, and Kingdom of Saudi Arabia (“KSA”), (48 of which are in India, as at December 31, 2024).

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About Industry:
The home services market in India is anevolving sector aimed at enhancing the convenience and quality of life for households. This market includes both traditional and modern service offerings, ranging from basic household chores to specialized professional services. The market has traditionally been dominated by unorganized local vendors and suffers from inconsistencies in availability, pricing, quality, and post-service support, leading to varying levels of customer satisfaction. This presents an opportunity for technology-driven platforms to standardize services, improve matching of demand and supply, and provide better earnings and benefits for service professionals by offering a more transparent and efficient alternative to traditional channels (Source: Redseer Report)

Source: SEBI, BSE, NSE, DRHP, Urban Company, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.