Mobile app-based service provider, Urban Company, is set to come up with an initial public offering (IPO). The company has filed draft papers with the share market regulator Securities and Exchange Board of India (SEBI) on Monday. According to the draft papers, the company is eying on to raise Rs 1,900 crore through this issue.
The Urban Company will raise Rs 429 crore through the issuance of fresh shares, whereas existing investors will offload stakes worth Rs 1,471 crore through an Offer for Sale (OFS), as per the Draft Red Herring Prospectus (DRHP) filed by the company.
Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd will offload shares under the OFS. Notably, Urban Company’s Founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra will not offload any shares in this issue. They collectively own about 21% stake in the company.
What Else For Urban Company?
Once the funds are gathered, the company plans to utilize Rs 190 crores for the development of new technology and cloud infrastructure. The company will potentially allocate Rs 70 crore for lease payments for office spaces. Another Rs 80 crore will be kept for marketing initiatives. The remaining funds will go for the general corporate purposes.
Earlier, the company had planned to raise Rs 3,000 crore, but now it has reduced the total size of its issue.
Furthermore, the company has appointed Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial as the book-running lead managers for this IPO.
About The Company
Urban Company, a mobile-app service provider, is a technology-enabled marketplace, which offers high-quality home and beauty services. The company operates in 59 cities in India and abroad. The country offers its services in the United Arab Emirates (UAE), Singapore, and the Kingdom of Saudi Arabia alongside with 48 cities across India.
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