Upcoming IPO: Urban Company Files DRHP For ₹1,900 crore IPO With SEBI

Urban Company, an Indian home services company, filed its DRHP (Draft Red Herring Prospectus) on April 28, 2025, to raise ₹1,900 crore through an initial public offering (IPO). Previously, the company planned to raise ₹3,000 Crore.

IPO Structure and Details

• As per the DRHP, the issue is a combination of the Fresh Issue worth ₹429 crores and the Offer for Sale (OFS) component of ₹ 1,471 crores. 
• The equity shares are proposed to be listed on both the BSE and NSE.
• The book-running lead managers for the IPO are Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited. 
• The company may consider a pre-IPO placement for up to ₹ 85.8 crores before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC).

Utilisation of Funds

The company will not receive any proceeds from the OFS component and will go directly to the selling shareholders. 

The net proceeds from the fresh issue will be allocated towards the following purposes. 

• Development of new technology and cloud infrastructure
• Office lease payments and marketing activities
• General corporate purposes

Financial performance

For the year ended December 2024, the company’s revenue from operations rose to ₹846.02 crores, up 40.75% from ₹600.90 crores in the previous year. Also, after a period of continuous losses, the company reported a profit of ₹242.597 crores for the period ended 31 December 2024.

Company Profile 

Urban Company is a full-stack online services marketplace that offers services across home and beauty categories, including cleaning, plumbing, pest control, carpentry, electrician, appliance servicing and repair, painting, skincare, hair grooming and massage therapy.

Currently, they operate across 59 cities. Of which, 48 cities are in India and rest are in the United Arab Emirates (“UAE”), Singapore, and Kingdom of Saudi Arabia (“KSA”). 

Based on net transaction value, Urban Company was the leading online full-stack home and beauty services platform in India (In nine months ended December 31, 2024 and as per Redseer Report)

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