Urban Company IPO GMP: Day 2 Strong Demand and Grey Market Insights
The month of September has been quite exciting for stock market investors and financial enthusiasts, especially because of the Urban Company IPO. If you have been actively tracking the market, you must have noticed that the Urban Company IPO is already over-subscribed on day 2, and the grey market premium (GMP) is showing quite impressive figures. In this article, we will discuss in detail Urban Company IPO GMP, day 2 subscription stats, and what opportunities are there for investors.
Urban Company IPO GMP Shows Strong Investor Demand
Urban Company, an app-based beauty and home services provider, has invited investors for its Rs 1,900 crore IPO. The IPO price band was set at ₹ 98 to ₹ 103 per share and by the second day, the issue was 5.53 times oversubscribed. This over-subscription figure clearly shows that there is a lot of optimism in the market about Urban Company’s business model and growth potential. During trading in the grey market, the Urban Company IPO GMP reached ₹ 35, which indicates a 33.98% premium as compared to the upper band of the IPO.
Grey Market Insights: Urban Company IPO GMP Today
Grey market premium (GMP) is an unofficial figure which reflects the potential price of the shares before the IPO listing. As per today’s Urban Company IPO GMP, the listing price of shares can be expected to be around Rs 138. This looks quite attractive for investors as the potential for initial gains is quite strong.
Urban Company IPO GMP Day 2 Live Subscription Update
As per the live updates on the second day of the IPO, the issue of Urban Company has been subscribed 5.59x so far. If you are also thinking of investing in the IPO, subscription is open till September 12. The valuation of the company, if the price is fixed at the upper limit, will be around ₹14,790 crore in total, which is a promising signal for investors.
Urban Company IPO GMP Allocation and Use of Funds
Gurugram-based Urban Company plans to raise ₹472 crore through issuance of new shares, while existing stakeholders will sell their stakes worth a total of ₹1,428 crore. Major investors like Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd and VYC11 Ltd are participating in this offer. The raised funds will be primarily used to enhance technology and cloud infrastructure, cover office lease expenses, conduct marketing campaigns and manage corporate expenses.
Analyst Views on Urban Company IPO GMP and Valuation
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are managing this IPO as book-running lead managers. Analysts say that Urban Company is a unique home service platform, whose market penetration is still quite underdeveloped. If the company makes optimum utilisation of its core employee strength, then operating leverage will improve and profitability and cash flows will remain strong in the long term.
According to a report by ICICI Direct Research, Urban Company IPO GMP valuation at the upper price band is around 11.4x FY25 EV/Sales (12.1x EV/Sales after equity dilution). This is largely in-line with the valuations of other new-age platform companies. The research firm has assigned NEUTRAL rating to the IPO, meaning investors should carefully take a decision based on their risk appetite.
Urban Company IPO GMP: Investor Takeaways
Investors must understand that over-subscription of the IPO and high GMP do not just mean short-term listing gains. In the long-term, the sustainability of the company’s business model and revenue growth are critical. In case of Urban Company, market sentiment looks positive looking at FY25 financials and strong revenue growth.
If you keep an eye on Urban Company’s IPO GMP and subscription patterns, it shows that investors are quite optimistic about the company’s future growth. But remember, investing in IPO always comes with risk, and after listing the share price may go up or down depending on market conditions.
Disclaimer:
All financial and IPO details given in this article are based on market reports and official announcements. This article is not an investment advice. Always confirm with your financial advisor or verified sources before taking any investment decision.
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