Urban Company shares fall further towards IPO price after shareholder lock-in ends

Shares of newly listed Urban Company Ltd. fell as much as 6% on Monday, December 15, as its three-month shareholder lock-in period comes to an end.

As many as 41.5 million shares or 3% of the company's outstanding became eligible for trade as the lock-in came to an end today, according to Nuvama Alternative & Quantitative Research.

Based on Friday's closing price, the value of the shares that were up for trade today was worth ₹534 crore.

It must be noted that the end of the shareholder lock-in period does not mean all the shares will be sold in the open market, but they only become eligible to be traded.

Urban Company

has received coverage initiations from Morgan Stanley, Goldman Sachs and Kotak Institutional Equities, and all three brokerage firms expect the stock to decline going ahead.

Morgan Stanley initiated coverage with an 'Underweight' rating and a price target of ₹117. Goldman Sachs initiated with a 'Neutral' rating and a price target of ₹140, while Kotak Institutional Equities began coverage with a 'Sell' rating and a price target of ₹120.

Urban Company has been one of the most successful listings of 2025. The stock made its debut at a major premium to the issue price of ₹103 and nearly doubled within a few days before the subsequent correction began. The stock is down 38% from its post-listing high of ₹201.18.

Shares of Urban Company are trading 2.44% lower on Monday at ₹125.70. The stock remains about 21% above its issue price.