Urban Company IPO — Should You Bid? Read Nirmal Bang Report For Key Details

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Nirmal Bang Report

Urban Company Ltd. launched its initial public offering today and the offer closes for subscription on Sep 12.

Urban Company is a technology-driven, full-stack online services marketplace offering qualityfocused home and beauty services across 51 cities, including 47 in India along with UAE and Singapore, excluding KSA, which is served through a joint venture. The company has set the price band between Rs 98 and Rs 103 per share. 

The Rs 1,900-crore IPO comprises a fresh issue of 4.58 crore shares amounting to Rs 472 crore and an offer-for-sale of 13.86 crore shares worth Rs 1,428 crore.

Objects of the offer

• Expenditure for new technology development and cloud infrastructure.

• Expenditure for lease payments offices.

• Expenditure for marketing activities.

• General corporate purposes.

Key Growth Drivers

• Expanding Consumer Base and Market Penetration.

• Improving Consumer Retention and Spending.

• Launching New Product and Service Offerings.

• Investing in Technology and Infrastructure.

Key Risks

• Intense Competition from Traditional and Online Players.

• Inability to Attract and Retain Service Professionals.

• Risk of Platform Circumvention.

• Dependence on Brand Strength and Reputational Risks.

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