Urban Company, India’s top tech-enabled home services marketplace, opened its ₹1,900 crore IPO on September 10, 2025. Priced at ₹98-₹103 per share, the issue includes a fresh issue of ₹472 crore and an offer-for-sale of ₹1,428 crore by current investors. The offer closes on September 12, with allotment to come by September 15 and listing on September 17 on BSE and NSE.
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Strong Retail and Subscription Demand
The IPO saw strong investor demand, with the retail segment oversubscribed over six times on Day 1. Anchor investors pre-subscribed ₹854 crore, indicating strong institutional support. Retail investors applied through ASBA or UPI, with a minimum lot size of 145 shares, priced at approximately ₹15,000 at the higher price band.
Grey Market Premium (GMP) Points Towards Listing Gains
The Grey Market Premium is about ₹35-37, reflecting about 35% premium to the IPO price band. This indicates high market hopes of listing gains and strong investor desire for the growth story of Urban Company.
Analyst Opinions on Valuation and Growth Potential
Analysts like the leadership of Team Urban in the relatively unorganised ₹60,000 crore home services segment and high brand recall. But they warn about the valuation is rich, with a market cap after the IPO at around ₹14,800 crore and price-to-earnings ratio of about 65 times FY25 earnings. INVasset PMS’s Harshal Dasani terms it a “high-growth, high-valuation opportunity” for long-term investors. Anand Rathi suggests a “Subscribe-Long Term” approach with the company’s enhancing profitability and market penetration. Deven Choksey finds valuation reasonable against India’s consumer technology peers.
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Business Model and Financial Performance
Established in 2014, Urban Company enables customers to connect with skilled professionals across more than 15 service categories, such as beauty, cleaning, plumbing, and appliance repair. The firm is present in India, UAE, Saudi Arabia, and Singapore. FY25 revenues expanded 38% year-on-year to ₹1,144.5 crore, with net profit of ₹240 crore assisted by tax credits, indicating robust profitability.
Use of IPO Proceeds and Promoter Holding
Proceeds from the new issue will be used to finance technology upgrades, cloud infrastructure, marketing, and office lease payments, setting up the company for long-term growth. Post-IPO promoter holding is projected to decline by a small percentage from 21.1% to 20.4%, towards slight liquidity and institutional presence.
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What to Conclude
Urban Company’s IPO is a deal in India’s expanding tech-enabled services space, with robust subscription and high GMP. Although valuations are plush, the company’s size, brand power, and future growth potential make it a compelling long-term bet for investors looking to take advantage of India’s changing digital services space. The IPO displays strong market faith in Urban Company’s capacity to grow in this fast-formalising market.
