ET NEWS

ET Intelligence Group: Urban Company, an online marketplace offering home and beauty services, plans to raise ₹472 crore through fresh equity for new technology development, cloud infrastructure, lease payments and marketing activities. It will raise up to ₹1,428 crore through an offer for sale. Promoter stake will fall to 20.4% after IPO from 21.1%. The company's revenue increased by 34.1% to ₹1,144.5 crore annually between FY23 and FY25. However, it has just started reporting profit in FY25. Further, net profit in the June quarter dropped by 45% year-over-year and valuation looks rich. Given these factors, investors with high-risk appetite may consider the IPO.Urban Company provides services including home cleaning, pest control, plumbing, carpentry, appliance servicing and electrical repair, painting, skincare, and massage therapy among others. It also launched water purifiers and electronic door locks under the 'Native' brand in FY23 and FY24, respectively. It operates in 47 Indian cities and 4 cities across the UAE and Singapore as of June 2025. This apart, it also has a joint venture in the Kingdom of Saudi Arabia.123797333Net transaction value (NTV) grew 25.5% to ₹3,270.9 crore between FY23 and FY25. NTV and revenue increased 20% and 30.8% on-year to ₹1,030.6 crore and ₹367.3 crore in June 2025 quarter. It reported net profit of ₹239.8 crore in FY25 against net loss of ₹312.5 crore. Adjusted Ebitda improved to ₹12.1 crore in FY25 from an operating loss of ₹297.7 crore in FY23. The company reported net cash flows from operating activities of ₹54.6 crore compared with a cash outflow of ₹85.6 crore and ₹237.8 crore in FY24 and FY23, respectively.Considering post-IPO equity and net profit for FY25, company demands a P/E multiple of up to 62. It does not have a direct publicly listed at-home services peer. On price-sales front, Urban Company demands multiple of 12 vs P/S between seven and 16 for peers like Eternal.

Mumbai: Investors may have a reason to cheer Infosys' latest share buyback announcement. In the past, the stock has mostly risen in three- and six-month periods after the information technology bellwether announces buying back the shares.On Tuesday, Infosys shares rose 5% after the company said its board would meet on Thursday to decide on the buyback. Other stocks in the sector gained between 1% and 3% with the Nifty IT index jumping 2.8%. The benchmark Nifty gained 0.4%.This will be the fifth share buyback by the IT firm, whose shares are down over 20% so far in 2025 amid concerns over a US slowdown.123797264Data from ETIG shows that from the day of the announcement of such an offer, Infosys shares rose on three out of the four occasions over three- and six-month periods. During the one-month periods, the share performances have been mixed.Companies use share buybacks as a signal to convey to investors the management's confidence in the business. While buybacks result in a reduction in the number of outstanding shares, they also indicate how companies want to allocate the capital at that juncture.

LONDON: Oil extended gains on Tuesday, supported by the latest oil output hike from OPEC+ being smaller than anticipated, expectations that China will continue stockpiling oil and concerns over potential new sanctions on Russia.Eight members of the Organization of the Petroleum Exporting Countries and allies agreed on Sunday to raise production from October by 137,000 barrels per day, lower than the increases of about 550,000 bpd they made for September and August.Brent crude rose 53 cents, or 0.8%, to $66.55 a barrel by 1200 GMT, while U.S. West Texas Intermediate crude climbed 54 cents, or 0.9%, to $62.80."Prices are holding up amid speculation that production will not rise by the amount the eight members have allowed themselves, and not least the fact China according to data has been buying around 0.5 million barrels per day towards stockpiling," said Ole Hansen of Saxo Bank.China's stockpiling of oil, which has helped soak up excess production this year, is likely to continue at a similar rate in 2026, the chief strategist for commodity trading house Gunvor said on Monday.Crude is also drawing support from the reduced amount of unused production capacity in OPEC+, said Giovanni Staunovo of UBS. A drop in spare capacity limits the group's ability to cover for sudden supply shocks and tends to support prices."The realization that the October OPEC+ supply increase could be 60,000-70,000 barrels per day is one factor, the other is that OPEC+ spare capacity is much smaller than many thought," he said of the reasons for the rally.Speculation of more sanctions on Russia after the country's biggest air attack on Ukraine set fire to a government building in Kyiv also supported prices. U.S. President Donald Trump said he was ready to move to a second phase of restrictions.Further sanctions on Russia would diminish its oil supply to global markets, which could support higher oil prices.Also in focus is the expectation that the U.S. Federal Reserve, which meets next week, will cut interest rates. Lower rates reduce consumer borrowing costs and can boost economic growth and demand for oil.

Home services marketplace Urban Company raised Rs 854 crore anchor investors ahead of its IPO, opening tomorrow. The issue will close on September 12. According to a release put out, the company allocated 8.29 crore shares to investors at Rs 103 apiece, which is the upper price band of the IPO.Some of the marquee names who participated in the anchor round include SBI Fund, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Pru Life, SBI Life, Citigroup, Goldman Sachs among others.Analysts believe Urban Company’s IPO offers investors an opportunity to participate in India’s leading tech-enabled home and beauty services platform, with proven scalability across 12,000+ micro-markets in India and select international markets.The company's hyperlocal model drives efficiency, network effects and high engagement, while continued investments in professional training, retention and technology (AI-driven recommendations, operational tools and products like ‘Native’ and ‘Co-Pilot’) strengthen its competitive moat.Looking at the financials, Urban Company has delivered robust growth, with revenue from operations rising 30% in FY24 and 38% in FY25, alongside a turnaround to net profit of Rs 240 crore, reflecting operational leverage and improved unit economics.On valuation, at the upper price band of Rs 103, the issue is asking for a market cap of Rs 14790 cr. Based on FY26E annualized earnings and the fully diluted post-IPO capital, the company is asking a market cap-to-sales multiple of 10x, which appears fully priced given current financials."However, we believe the company may command a premium valuation compared to India’s other internet tech peers, driven by its stronger unit economics, premium service mix and deeper supply-side integration. These factors, coupled with its early leadership in a large and underpenetrated services market, position it for a scalable and profitable growth trajectory," said Mehta Equities.The offer is a mix of Rs 472 crore fresh issue and an offer-for-sale worth Rs 1,428 crore by existing investors. The price band has been fixed at Rs 98–103 per share.Retail investors can apply with a minimum lot size of 145 shares, which translates to around Rs 14,935 at the lower end of the band. Employees will get a Rs 9 discount per share. The IPO allotment is scheduled for September 15, while listing on the BSE and NSE is set for September 17.