The Rs 1,900 crore IPO was subscribed over 103 times overall, led by strong demand from Qualified Institutional Buyers (QIBs), who bid 147 times, while Non-Institutional Investors subscribed 77 times and retail investors 41 times..
Priced at the upper band of Rs 103, the IPO has also attracted strong interest in the grey market, where the GMP is around Rs 52 per share. This implies a likely listing price near Rs 155 — a sharp 54% premium over the issue price — reflecting the Street’s confidence in the company’s growth prospects and market leadership.
Founded in 2014, Urban Company offers a wide range of home services, including beauty and wellness, appliance repair, cleaning, and maintenance.
The company currently operates in 47 Indian cities and has expanded internationally to the UAE and Singapore. With plans to enter more than 200 cities by FY30, it aims to position itself as the go-to destination for tech-enabled household services in a market still dominated by unorganised players.
Its platform-based model, strong brand recall, and first-mover advantage provide significant long-term growth tailwinds.Also Read: Euro Pratik Sales IPO GMP at zero despite Ashish Kacholia Investment. Should you bid?Financially, Urban Company has delivered strong topline growth, with revenue rising to Rs 1,144.5 crore in FY25, up 38% from Rs 830 crore in FY24.
Profitability has also been improving, though the stock trades at a premium. With a P/E of around 54x on adjusted earnings, Urban Company is valued higher than sector peers, reflecting its growth orientation and leadership position.
Commenting on post-listing strategy, Prashanth Tapse, Sr VP Research at Mehta Equities, said: “Despite expensive valuations and a muted market backdrop, the robust response to Urban Company’s IPO highlights confidence in its long-term structural story. Investors should hold allotted shares with a long-term view, while non-allottees may wait for post-listing consolidation before entering.”
“Urban Company enjoys strong demand visibility as the only organized player in the online home services segment. With a GMP suggesting a listing premium of over 50%, investors can consider booking partial profit on listing day while holding the rest for long-term gains,” added Shivani Nyati, Head of Wealth at Swastika Investmart.
The IPO proceeds will be used to strengthen technology infrastructure, expand service categories, and fund geographical expansion. Analysts believe the company is well-positioned to benefit from rising demand for reliable, tech-enabled home services in both domestic and international markets.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of The Economic Times)
as a Reliable and Trusted News Source
