Urban Company’s initial public offering (IPO) closes for public bidding today, 12 September, following considerable interest from investors across categories.
The home services provider’s IPO has been subscribed 9.48 times overall, with the retail segment alone subscribed 18.67 times and strong demand also seen from non-institutional investors, who subscribed 19.15 times by September 11.
The qualified institutional buyers segment has seen more modest participation, subscribed 1.56 times, indicating differing levels of enthusiasm among investor groups. The high demand is mirrored in the grey market premium (GMP), which has risen more than fourfold since the IPO opened.
Urban Company’s latest grey market premium stands at Rs 43 as of 6:53 AM on September 12, 2025. With the IPO’s price band set at 98.00 to 103.00 per share, the estimated listing price is 146, implying an expected gain of 41.75% per share over the cap price.
Market observers note that the GMP surge signals strong short-term sentiment, with many retail investors attracted by potential initial listing gains. However, analysts point out that grey market trends are not always predictive of long-term performance, and highlight the importance of understanding the company’s underlying fundamentals.
RISKS WITH URBAN COMPANY IPO
Despite the excitement, some market experts urge caution regarding the company’s valuation and future profitability.
Gaurav Garg of Lemonn Markets Desk commented, “Urban Co. is tapping into a massive, underpenetrated US$60 billion home services market with strong technology, brand and first-mover advantages. The company has shown encouraging signs of turnaround, but the FY25 profit was largely aided by tax credits and core profitability remains thin. At a P/E of over 60x, the issue looks aggressively priced, especially with most of the proceeds going to existing shareholders through the OFS.”
Garg further added, “For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations.”
Urban Company’s IPO comprises a book build issue of Rs 1,900 crore, which includes a fresh issue of 4.58 crore shares amounting to Rs 472 crore and an offer for sale (OFS) of 13.86 crore shares totalling Rs 1,428 crore.
The IPO’s price band is set at 98.00 to 103.00 per share, with a minimum application lot size of 145 shares for retail investors, requiring a minimum investment of 14,935. For non-institutional investors, sNII and bNII categories require larger commitments. Up to 2,42,718 shares are reserved for employees at a 9.00 per share discount.
The share allotment is expected on September 15, with listing on BSE and NSE tentatively scheduled for September 17. Kotak Mahindra Capital Company Ltd is the lead manager, and MUFG Intime India Pvt. Ltd is the registrar for the issue.
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