Urban Company allots ₹80 crore for marketing in upcoming ₹1,900 crore IPO

Urban Company has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed initial public offering (IPO) amounting to ₹1,900 crore.

The public issue will comprise a fresh issue of equity shares totalling ₹429 crore and an offer for sale (OFS) of ₹1,471 crore by existing shareholders, including Accel India, Elevation Capital, Tiger Global, and Vy Capital. The three co-founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra , will not sell any shares as part of the OFS. The trio currently holds a combined stake of approximately 21% in the company.

According to the DRHP, Urban Company plans to utilise ₹190 crore of the net proceeds from the fresh issue for technological upgrades and cloud infrastructure development. An additional ₹80 crore is set aside for marketing initiatives, while ₹70 crore will go towards office lease payments. The remainder will be allocated to general corporate expenses.

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are managing the issue as the book-running lead managers.

The company, known for its at-home service offerings across categories such as beauty, cleaning, and repairs, has scaled down the size of its IPO from the earlier estimated ₹3,000 crore.

News