NEW DELHI: Urban Company shares made a stellar debut on the stock exchanges on Wednesday, listing at more than 57% above their issue price. On the NSE, the stock opened at Rs 162.25 per share, marking a 57.52% premium to its IPO price of Rs 103.
On the BSE, the stock was listed at Rs 161 apiece, a 56.31% premium, giving the company a market valuation upwards of Rs 23,000 crore.
Urban Company, an app-based beauty and home services platform, was poised for a robust stock market debut as its shares were trading at over 50% premium in the unofficial grey market. The company’s initial public offering (IPO), which closed recently, received an overwhelming response, drawing subscriptions 103.63 times the issue size.
Urban Company’s Rs 1,900 crore IPO was a mix of a fresh issue and an offer-for-sale. The fresh issue comprised of 4.58 crore shares worth Rs 472 crore and the offer-for-sale portion saw 13.86 crore shares, amounting to Rs 1,428 crore.
The portion for retail investors was subscribed 39.25 times while the Non-Institutional Investors (NIIs) quota was subscribed 74.04 times. The highest demand came from Qualified Institutional Buyers (QIBs), who bid 140.2 times the shares reserved for them.
The company had already raised Rs 854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.
Shivani Nyati, Head of Wealth at Swastika Investmart said that for those who received Urban Company’s share allotment in the IPO, consider book partial profit and hold rest for long-term gains with stop loss of Rs 120.
Shringar House of Mangalsutra also made an impressive debut on the stock market with a listing gain of approximately 63% over its issue price of Rs 83, getting listed at around Rs 135. The company is engaged in designing, manufacturing, and marketing a diverse range of Mangalsutra using 18k and 22k gold along with stones like American diamonds, cubic zirconia, pearls, and semi-precious stones for its B2B clients.
Nyati said that investors are advised to book partial profits near current levels while holding the balance with a stop-loss set at Rs 115 to manage downside risk.
Dev Accelerator shares were also listed today. Listing at Rs 61 per share on the NSE, matching its IPO issue price, reflecting a slight premium of 0.49% over the issue price. The company operates in the flexible workspace sector, providing co-working solutions across India.
“While the strong subscription and positive listing suggest investor confidence, the company's modest profit margins and high debt levels warrant caution. Risky investors can hold for medium to long term with a stop loss of Rs 50,” said Nyati.