By the end of Day 2, the issue had drawn an enthusiastic response, with overall subscription standing at 9 times. The retail portion was oversubscribed 17.68 times, while the non-institutional investor (NII) category was subscribed 18.22 times, underscoring broad-based interest across investor segments.
Urban Company IPO GMP Today:
The grey market premium (GMP) is hovering around Rs 37, translating into a 35.9% premium over the IPO’s upper price band of Rs 103. This signals strong investor appetite and hints at a potential listing price of about Rs 140.
GMP represents the unofficial premium at which IPO shares change hands in the grey market before their formal debut on the stock exchange.
Urban Company IPO Subscription Status:
At the close of Day 2, the IPO recorded an overall subscription of 9 times.
Retail individual investors (RIIs) subscribed 17.68 times the 1.93 crore shares reserved for them. Non-institutional investors (NIIs) subscribed 18.22 times their 2.90 crore share quota. Qualified institutional buyers (QIBs) subscribed 1.48 times their 5.80 crore share allocation.
Urban Company IPO Details
The IPO is priced in the range of Rs 98-103 per share and consists of a fresh issue of Rs 472 crore and an offer for sale (OFS) of Rs 1,428 crore by existing shareholders. The bidding window will remain open until September 12, and the stock is scheduled to list on the BSE and NSE on September 17.
Company overview
Founded in 2014, Urban Company is a digital platform that connects users with trained professionals for services such as cleaning, beauty treatments, appliance repair, pest control, plumbing, electrical work, and wellness. The company also retails products under its in-house brand “Native,” including water purifiers and electronic door locks, and has launched InstaHelp, a micro-market initiative for daily household assistance.
Urban Company operates in 47 cities across India and has expanded internationally through joint ventures in the UAE, Singapore, and Saudi Arabia. Since inception, it has served over 14.5 million unique customers, with 46% added in the past three years. As of June 2025, the platform had over 54,000 active service professionals, according to Redseer, with many earning 30–40% more than counterparts in the unorganised sector.
Financials and Valuations
Urban Company reported revenues of Rs 1,144.5 crore in FY25, marking year-on-year growth of 38%. The company turned profitable during the year, posting a net profit of Rs 240 crore, largely due to a deferred tax credit of Rs 211 crore. Excluding this one-time gain, pre-tax profit stood at Rs 28 crore. The company also reported a modest profit in the quarter ending June 2025.
At the upper end of the IPO price band, Urban Company is valued at approximately Rs 14,800 crore, reflecting a price-to-earnings (P/E) ratio of 65.7x based on FY25 earnings and a price-to-sales (P/S) ratio of 12.9x. Analysts suggest the IPO is fully priced, indicating limited potential for significant short-term gains.
Strengths
Urban Company benefits from strong brand recognition, a trusted platform, and high customer loyalty. Its hyperlocal, micro-market approach allows for faster service delivery and efficient allocation of service professionals. To ensure consistent quality, the company provides in-house training and uses standardized consumables. Additionally, its technology platform leverages AI and machine learning to balance supply and demand.
Risks
Urban Company has a history of losses and negative cash flows. Its current profitability is slim when excluding tax credits and remains dependent on the growth of newer business segments such as Native and InstaHelp.
The company faces competition from both established offline providers and smaller online platforms. Revenue could also be impacted if customers and service professionals transact outside the platform. Regulatory uncertainties around gig worker classification and challenges tied to international expansion further add to its risk profile.
Should You Subscribe?
Brokerages generally advise subscribing to Urban Company’s IPO with a long-term investment horizon. While valuations may appear high in the near term, the company’s dominant position in the largely unorganised Rs 60 billion home services market, along with its potential to expand into new service categories, provides strong structural growth prospects.
Anand Rathi notes, “Conservative investors might prefer to wait for more attractive entry points, but those confident in the formalisation of India’s home services sector should consider participating in this IPO.”
Urban Company Limited (UCL) serves urban consumers across a wide range of household services in a market primarily led by unorganised players. Between FY23 and FY25, UCL’s Net Transaction Value (NTV) and revenues are projected to grow at a compound annual growth rate (CAGR) of 25.5% and 34.1%, respectively. Profitability is expected to improve, with EBITDA likely to break even by FY26. At the upper end of the price band, UCL is valued at a post-issue price-to-sales (P/S) ratio of 12.9x. SBI Securities Research recommends subscribing to the IPO with a long-term perspective.
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