Urban Company544515Routine SEBI update

Monitoring agency report: nil deviation in use of IPO proceeds, issue size Rs. 472.00 crore

CARE Ratings has issued its Monitoring Agency Report on the IPO proceeds for the quarter ended September 30, 2026.

By ScoutQuest · Fri 16 Oct 2026, 4:29 PM IST · 2 min read

IPO size: Rs. 472.00 crore
Deviation from objects of issue: Nil
Objects monitored: Rs. 190.00 crore technology/cloud; Rs. 75.00 crore office leases; Rs. 90.00 crore marketing

What has been shared

Urban Company has submitted CARE Ratings Limited's Monitoring Agency Report for the quarter ended September 30, 2026. This is the monitoring agency's review of how the company has used the money raised through its Initial Public Offer. CARE Ratings is acting as the Monitoring Agency for the issue, under a Monitoring Agency Agreement. The company states the report was reviewed and approved by its Audit Committee and Board of Directors.

Size of the issue

The public offer raised an amount aggregating to Rs. 472.00 crore.

The core finding

Deviation from the objects of the issue: Nil
Range of deviation: Not Applicable
Whether all utilisation is as per the disclosures in the Offer Document: Yes
Whether the means of finance for the disclosed objects has changed: No
Whether any major deviation was observed over earlier monitoring agency reports: No
Whether any favourable or unfavourable events affecting the viability of the objects are present: No
Whether any other relevant information may materially affect the decision of investors: No
Shareholder approval in case of material deviations: No material deviation

The report defines a material deviation as a deviation in the objects or purposes for which the funds were raised, or a deviation in the amount of funds actually utilised by more than 10% of the amount projected in the offer documents.

The objects being monitored

The report lists the original cost of the objects as per the Offer Document

Expenditure for new technology development and cloud infrastructure: Rs. 190.00 crore
Expenditure for lease payments for our offices: Rs. 75.00 crore
Expenditure for marketing activities: Rs. 90.00 crore

For each of these objects, the revised cost is marked "Not Applicable", and the monitoring agency records "No comments" under reason for cost revision, proposed financing option and particulars of firm arrangements made. The Board of Directors is also recorded as having "No comments" on these items.

How a retail investor can read this

A monitoring agency report is a periodic check that the money raised in an IPO is going where the company said it would. This one records nil deviation from the objects and confirms utilisation is in line with the Offer Document disclosures. It also records no material events affecting the viability of the objects and nothing that may materially affect an investor's decision.

The report carries a declaration that the monitoring agency does not perform an audit and does not independently verify the information or certificates it receives, and that certain sections titled "Comments of the Board of Directors" are filled in by the issuer's management and were not reviewed by the monitoring agency.

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Monitoring agency report: nil deviation in use of IPO proceeds, issue size Rs. 472.00 crore

The report lists the original cost of the objects as per the Offer Document

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