Urban Company Makes Stellar Market Debut, Shares List At 58% Premium: Should You Buy, Sell Or Hold?

Urban Company IPO Listing, Share Price Today: Home services platform Urban Company Ltd on Wednesday made a stellar stock market debut. The shares of the company listed at a premium of 57.5% on September 17, after its initial public offering drew bids worth Rs 1.14 lakh crore. The stock is listed at Rs 162.25 on the National Stock Exchange (NSE), compared with its issue price of Rs 103.

After the listing, the shares surged and touched an intra-day high of Rs 179 apiece, which is 73.8% higher than their issue price.

Urban Company IPO Listing Price: Should You Buy, Sell Or Hold?

Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Urban Company Ltd made a remarkable debut on the Indian stock exchanges today. The stock opened at Rs 162.25

on the NSE, reflecting a 57.5% premium over its IPO issue price of Rs 103. Urban Company, formerly known as UrbanClap, is a leading tech-enabled home services platform offering a wide range of services, including beauty and wellness, appliance repair, cleaning, and maintenance.”

In FY25, Urban Company reported revenue Rs 1,144 crore (38% YoY growth) and Rs 240 crore (a significant turnaround from a Rs 93 crore loss in FY24).

“For those who received the allotment may consider booking partial profit, and holding the rest for long-term gains with a stop loss of 120,” Nyati added.

Prashanth Tapse, senior vice-president (research) of Mehta Equities Ltd, said, “Strong listing was above our expectations; despite listing pop, Urban Company presents a compelling long-term structural story and can serve as a proxy for the growing demand in the home services segment across its key geographies.”

In spite of being perceived as expensive IPO from a valuation standpoint, the offer witnessed strong investor demand which was primarily led by Qualified Institutional Buyers (QIBs) 147x and Non-Institutional Investors (NIIs) 77x, with retail participation also remaining healthy 41x compared to other recent offerings, he added.

“The robust response is well supported from a long-term investment perspective. Urban Company is currently the only organized player in the tech-driven online home services marketplace, enjoying a leadership position across 51 cities in India, as well as in international markets like the UAE and Singapore. Its strong brand recall and first-mover advantage position it as a preferred service provider in a largely fragmented sector,” Tapse said.

Accordingly, we continue to recommend allotted investors who can take near term risk to HOLD the stock from a long-term investment perspective, keeping in mind the inherent market risks. For non-allotted investors, a ‘Wait and Watch’ approach is advisable to assess any post-listing dip as a potential entry point, he added.