Ahead of its debut, the company's grey market premium (GMP) stood at around ₹52 per share, indicating a potential listing price nearly 51% above the upper price band.
The price-to-earnings (P/E) ratio is approximately 54 times based on adjusted earnings, higher than sector peers but reflective of the company's growth prospects, expanding service base, and improving profitability.
Investors are advised to book partial profits and hold the rest, said Shivani Nyati of Swastika Investmart.
Prashanth Tapse of Mehta Equities recommended that allotted investors hold the stock with a long-term view, while non-allottees should adopt a wait-and-watch approach for potential entry opportunities post listing.
"Beyond the immediate listing pop, Urban Company offers a compelling long-term structural story and serves as a proxy for the growing demand in the home services segment," he added.
Follow Urban Company's latest updates on the live blog here
Urban Company IPO details
The company priced its IPO in the fixed band of ₹98-103 per share, valuing it at ₹14,790 crore at the upper end.
Urban Company already raised ₹854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.
The IPO comprised a fresh issue worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. Key shareholders reducing stakes include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd.
The listing will provide partial exits to early backers such as Accel, Elevation, and Tiger Global. Proceeds from the fresh issue will be directed towards marketing initiatives and technology upgrades, according to the company's prospectus.
Company overview
Urban Company is a technology-driven, full-stack online services marketplace offering quality-focused solutions across 51 cities in India, UAE, and Singapore, with Saudi Arabia served through a JV.
Its platform enables customers to book services such as cleaning, pest control, plumbing, carpentry, electrical work, appliance repair, painting, skincare, grooming, massage therapy, and other home assistance, delivered by trained independent professionals.
Its annual net profit as of March 2025 stood at ₹290 crore, which is growth of 2690.9% year-on-year. Annual revenue as of March 2025 is ₹910 crore, which is growth of 32.4% year-on-year.
