Urban Company Stock Sees 6% Drop as Anchor Lock-In Period Ends

Urban Company Shares Fall After Anchor Lock-In Ends

Shares of Urban Company dropped nearly 6% on Monday, reaching a low of Rs 121.40 on the NSE. This happened because the three-month anchor lock-in period ended, making 41 million shares available for trading.

According to Nuvama's estimates, these shares account for 3% of the total outstanding shares. The stock's price action occurred with strong volumes, with 1.2 crore shares being traded around closing time. The stock finally ended at Rs 124, down by Rs 4.84 or 3.76% from Friday's closing price.

What Happened to Urban Company's IPO?

Urban Company's initial public offering (IPO) was worth Rs 1,900 crore and was launched on September 10. The company had set a price band of Rs 98-103. The stock had a strong debut, listing at a 56% and 58% premium on the BSE and NSE, respectively.

The listing prices were Rs 161 and Rs 162.25, respectively. The shares rallied to a high of Rs 201.18 on the NSE over the next five trading sessions but have been declining since then. As it hit its three-month low, the stock is now 40% lower from its peak, although it's still 20% above the issue price.

Investors and Funding

Urban Company, an at-home services platform, raised Rs 854 crore from anchor investors, including GIC, Fidelity, Norges Bank, and others. Domestic mutual funds like SBI MF, ICICI Prudential, Nippon MF, HDFC MF, and Aditya Birla Sun Life invested a total of Rs 316 crore in Urban Company.

With the anchor lock-in period ending, investors now have the option to sell their shares. However, it remains to be seen how they will react to this development.

Key terms: Urban Company, NSE, BSE, IPO, anchor investors, stock market trends, investment, stock prices, market news, financial updates.