Urban Company shares worth ₹534 crore to free up for trade on Monday; stock gains

Shares of newly listed home service provider Urban Company Ltd. are trading with gains of around 2% in Friday's session, recovering after two consecutive days of decline.

December 15 is expected to be an important trading day for the stock, as the company's three-month shareholder lock-in will expire during the session.

According to Nuvama Alternative and Quantitative Research, a total of 41.5 million shares of Urban Company will become eligible for trading once the three-month lock-in ends. This represents about 3% of the company's outstanding equity.

Based on the current market price, the value of the shares that will be freed amounts to about ₹534 crore.

The company had earlier seen the expiry of its one-month shareholder lock-in on October 16, when another 41.5 million shares, also amounting to 3% of outstanding equity, became eligible for trade.

It is important to note that the end of a lock-in period does not mean these shares will necessarily be sold in the open market; it only makes them eligible for trading.

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 36% from its post-listing high of ₹201.18.

Shares of Urban Company are trading 1.84% higher on Friday at ₹128.75. The stock remains about 25% above its issue price.