The stock got listed at Rs 161 on the BSE, against the upper end of its price band at Rs 103, while on the NSE, the Urban Company stock debuted at Rs 162.25 apiece.
Ahead of the listing, the Urban Company IPO attracted strong interest in the grey market, commanding a premium of around Rs 52, which underscored investors’ confidence in the company’s growth prospects and its strong market leadership.
The initial public offering (IPO) of Urban Company witnessed an overwhelming investor interest, being oversubscribed by more than 103 times overall during the bidding process.
Founded in 2014, Urban Company has built a comprehensive platform for home services, offering everything from beauty and wellness to appliance repair, cleaning, and maintenance.
The company currently has a presence in 47 Indian cities and has expanded internationally to the UAE and Singapore. With an ambitious plan to scale operations to over 200 cities by FY30, Urban Company aims to cement its position as the leading destination for tech-enabled household services in a market still dominated by unorganised players.Backed by its platform-driven model, strong brand recall, and clear first-mover advantage, the company appears well-placed to capture long-term growth opportunities in the sector.For the fiscal year ending March 31, 2025, the company reported a revenue of Rs 1,144.5 crore, marking a 38% increase from Rs 830 crore in FY24.
After an impressive listing, what should investors do?
Shivani Nyati, Head of Wealth at Swastika Investmart, noted that the P/E ratio of the stock is approximately 54x based on adjusted earnings, which is higher than sector peers.
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However, she added that this reflects the company’s growth prospects, expanding service base, and improving profitability.
“Investors are advised to book partial profit and hold the rest,” she said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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