Urban Company’s Rs 500-crore pre-IPO secondary round: SBI MF, others buy Tiger, Accel shares

Urban Company has undertaken a bunch of secondary transactions worth nearly Rs 500 crore ahead of its upcoming IPO, with SBI Mutual Fund, Permira, Prosus and Elevation Capital buying out early backers Tiger Global and Accel at Rs 103 per share — the upper end of the company’s price band.

Regulatory filings reviewed by ET show that:

• Permira bought Tiger Global’s shares worth Rs 87.6 crore.
• Prosus acquired a Rs 87.1 crore stake from Accel.
• SBI Mutual Fund scooped up Tiger Global’s shares worth Rs 250 crore across its Midcap, Retirement Benefit, Innovative Opportunities and Emergent India schemes.
• Elevation Capital picked up another Rs 73.6 crore worth from Tiger Global.

In total, the pre-IPO and post-RHP block deals add up to about Rs 498 crore, all struck at Rs 103 per share.

The transactions peg Urban Company’s valuation at around Rs 15,000 crore ($1.8 billion), in line with the IPO’s post-issue market cap of Rs 14,095–14,790 crore.

Tiger Global, which invested in Urban Company at an average cost of around Rs 60 a share, more than doubles its money through these exits. Accel, another early investor, also partially cashed out via Prosus.

Urban Company opens its Rs 1,900 crore IPO on September 10, comprising a fresh issue of Rs 472 crore and an offer for sale of Rs 1,428 crore. The Gurugram-based company posted Rs 1,144 crore revenue and Rs 240 crore net profit in FY25, marking its first full-year profitability.