The IPO will comprise a fresh issue of shares worth Rs 429 crore and an offer for sale (OFS) of shares totalling Rs 1,471 crore
Setting the stage for a major public market debut, Urban Company, a marketplace offering beauty and home care services, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise Rs 1,900 crore through an initial public offering (IPO).
The IPO will comprise a fresh issue of shares worth Rs 429 crore (approximately USD 50 million) and an offer for sale (OFS) of shares totalling Rs 1,471 crore, taking the total offer size to around Rs 1,900 crore. The company intends to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Key early investors are looking to partially exit their stakes through the OFS. Accel India is set to offload shares worth Rs 433 crore, while Elevation Capital and Tiger Global will divest holdings valued at Rs 346 crore and Rs 303 crore, respectively. VY Capital and Bessemer India will also participate, selling shares worth Rs 216 crore and Rs 173 crore, respectively.
Elevation Capital currently holds the largest external stake in Urban Company at 10.84 per cent, followed by Accel India with 10.5 per cent and VY Capital with 9.18 per cent. Steadview and Prosus each hold 6.8 per cent, while Bessemer owns 6.46 per cent and Tiger Global holds 4.73 per cent. The company’s three co-founders — Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra — together control 20.01 per cent of the company, equally divided among them.
Accel’s exit value is projected to be 16.6 times that of Tiger Global, 5.6 times higher than VY Capital’s, and nearly double that of Bessemer’s. Elevation Capital, another early backer, is also expected to secure a strong return. In a notable early win, Snapdeal co-founders Kunal Bahl and Rohit Bansal reportedly earned a 200x return through their investment platform Titan Capital.
The IPO will be managed by Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial, who are acting as the book-running lead managers. Urban Company plans to deploy the proceeds from the fresh issue towards technology upgrades, cloud infrastructure, marketing, lease payments, and general corporate purposes.
