Synopsis:
Urban Company’s IPO opens on September 10, 2025, with a price band of Rs. 98 to Rs. 103 per share and a lot size of 145 shares. The company aims to raise Rs. 1,900 crore through a fresh issue of 4.58 crore shares and an offer for sale of 13.86 crore shares.
Urban Company’s IPO is a book-built issue targeting to raise Rs. 1,900 crore. The issue consists of a fresh issue of 4.58 crore shares, aggregating to Rs. 472 crore, combined with an offer for sale of 13.86 crore shares, totalling Rs. 1,428 crore.
The IPO was priced between Rs. 98 and Rs. 103 per share, with a lot size of 145 shares. This means investors must apply for at least 145 shares, or in multiples of 145.
A lot in the Urban Company IPO consists of 145 shares, and investors can apply only in multiples of this lot size. The company has allocated 75% of the net offer to qualified institutional buyers (QIBs), 10% to retail investors, and 15% to non-institutional investors.
The Urban Company IPO subscription period is from September 10 to 12, with the basis of allotment announced on September 15. Refunds will be initiated and shares credited to investors’ demat accounts on September 16, ahead of the stock’s tentative listing on September 17. Kotak Mahindra Capital Co.Ltd is the book-running lead manager, and MUFG Intime India Pvt.Ltd. is the registrar of the issue.
Grey Market Premium (GMP) of Urban Company Ltd
The last Grey Market Premium (GMP) for Urban Company IPO is Rs. 19, which is 18.45% over the issue price updated on September 4, 2025. With this GMP and the IPO price band considered, the estimated listing price of the IPO shares is Rs. 19 above the cap price.
About the company
Urban Company Ltd is India’s leading home services marketplace, connecting customers with professionals across categories like beauty, cleaning, plumbing, and appliance repair. The platform emphasizes convenience, quality, and reliability, offering tech-driven booking, payments, and customer support, while expanding its presence across urban and semi-urban markets in India and internationally.
The company reported strong financial growth in FY25, with revenue rising 36% to Rs. 1,260.68 crore and profit after tax (PAT) turning positive at Rs. 239.77 crore, compared to a loss of Rs. 92.77 crore in FY24.
Total assets grew to Rs. 2,200.64 crore from Rs. 1,638.65 crore, while net worth increased to Rs. 1,781.28 crore. Reserves and surplus also strengthened to Rs. 2,646.12 crore, reflecting the company’s improving financial position and operational performance over the past year.
Objectives of the IPO Offer
Urban Company Ltd plans to utilize the net proceeds from its IPO for several key purposes. Firstly, Rs. 190 crore will be allocated towards expenditure for new technology development and building cloud infrastructure to support its platform’s growth and scalability. Secondly, Rs. 75 crore is earmarked for lease payments related to its office spaces.
The company also intends to spend Rs. 90 crore on marketing activities to boost brand visibility and customer acquisition. The remaining funds will be used for general corporate purposes, which typically include working capital requirements and other operational needs.
Strengths of Urban Company Ltd
- Multi-category, hyperlocal home services marketplace benefiting from strong network effects, making the platform more useful as it scales.
- Well-established and trusted brand among consumers, ensuring customer loyalty and repeat engagement.
- Improved quality of service professionals through rigorous in-house training and provision of tools and consumables.
- Robust technology platform enabling efficient service fulfillment, consumer growth, and empowerment of service professionals.
Risks of the company
- Past Losses and Cash Flow Concerns: The company has experienced net losses and negative operating cash flows previously. Without sufficient revenue growth and improved cost-efficiency, maintaining profitability and positive cash flows in the future could be challenging, affecting the company’s sustainability.
- Customer Experience Dependency: The company’s success relies heavily on delivering a satisfactory experience to consumers. Failure to do so could harm both business performance and brand reputation.
- Intense Competition: The company faces strong competition from traditional offline service providers. Low online service penetration in target markets could limit demand on the platform and reduce the number of service professionals joining, negatively impacting revenues and operational costs.
- Attracting and Retaining Service Professionals: The platform’s appeal depends on maintaining a robust network of service professionals. Difficulty in attracting or retaining them could weaken the platform’s value proposition.
Written by Manideep Appana
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