Urban Company Shares Soar Over 55% on Market Debut
Urban Company has made a significant impact on the stock market with its recent debut, listing shares at a remarkable premium of over 55%. This tech-driven online platform for home services opened its shares at Rs 161 on the Bombay Stock Exchange (BSE) and at Rs 162.25 on the National Stock Exchange (NSE). The initial public offering (IPO) was priced at Rs 103 per share, indicating strong demand and investor confidence.
The scrip saw an impressive rise, closing at Rs 167.05 on the BSE, marking a 62.18% increase, while it finished at Rs 169 on the NSE, up 64.08%. This robust performance has exceeded market expectations, showcasing Urban Company’s potential as a leader in the home services industry.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted that the strong listing reflects a compelling long-term investment story. He recommended that investors who received allocations should consider holding their shares, keeping in mind the inherent market risks. For those who missed out on the IPO, a cautious ‘wait and watch’ approach is advisable to find a potential entry point after any post-listing dips.
The Urban Company’s IPO raised a total of Rs 1,900.24 crore, consisting of a fresh issue of 4.58 crore shares worth Rs 472.24 crore and an offer for sale of 13.86 crore shares amounting to Rs 1,428 crore. It opened for subscription from September 10 to September 12 and received an overwhelming response, being oversubscribed 103.63 times. Retail investors showed significant interest, with the retail portion being subscribed 39 times.
Qualified institutional buyers (QIB) demonstrated strong demand as well, with a subscription rate of 140.2 times. The company’s strong brand recognition and first-mover advantage position it favorably in the competitive home services market across 51 cities in India and in international markets like the UAE and Singapore.
Overall, Urban Company stands out as a significant player in the tech-driven online home services sector, with a promising future ahead. Investors are optimistic about its growth trajectory, making it an attractive option for long-term investment strategies.
