Urban Company launched its initial public offering (IPO) in the Indian market on Wednesday, September 10, with a total issue size of Rs 1,900 crores. The
IPO includes a fresh issuance of around 4.58 crore shares, aiming to raise Rs 472 crores, along with an offer for sale of approximately 13.86 crore shares valued at Rs 1,428 crores. Investors have until September 12, 2025, to apply. The allotment process is likely to conclude by September 15, with shares tentatively set to debut on the BSE and NSE by September 17, 2025. Pricing, Lot Size, and Application Details The IPO’s price band is fixed between Rs 98 and Rs 103 per share. Investors are required to apply in lots of 145 shares, with retail investors needing a minimum investment of Rs 14,935 at the upper price limit. For high-net-worth individuals (HNIs), the minimum application size varies: small HNIs (sNII) must apply for at least 14 lots (2,030 shares) amounting to Rs 2,09,090, while big HNIs (bNII) need a minimum of 67 lots (9,715 shares), totalling Rs 10,00,645. Kotak Mahindra Capital acts as the book-running lead manager, with MUFG Intime India Pvt. Ltd. handling the registrar duties. Urban Company IPO GMP Update The IPO is showing great enthusiasm in the grey market. The last grey market premium (GMP) for Urban Co. stood at Rs 36.5 as of 9:34 am on September 10, 2025. With a price band of Rs 103.00, the estimated listing price is Rs 139.5 (cap price plus today’s GMP), implying an expected gain of approximately 35.44 per cent per share. Expert Comment Gaurav Garg, Lemonn Markets Desk, noted, "Urban Co. is tapping into a massive, underpenetrated US$60 billion home services market with strong technology, brand and first-mover advantages. The company has shown encouraging signs of turnaround, but the FY25 profit was largely aided by tax credits, and core profitability remains thin. At a P/E of over 60x, the issue looks aggressively priced, especially with most of the proceeds going to existing shareholders through the OFS." "For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations," added Garg. About Urban Company Urban Company was founded in 2014 and operates an online marketplace connecting customers with verified professionals for home and beauty services across 51 cities in India, the UAE, and Singapore (excluding certain joint venture cities). The platform covers services including plumbing, electrical repairs, cleaning, beauty treatments, and massage therapy. The company has also diversified into home products, launching water purifiers and electronic door locks under its ‘Native’ brand. (Disclaimer: This article is meant solely for informational and educational purposes. The views and opinions expressed are those of individual analysts or brokerage firms and do not reflect the stance of Times Now. Readers are advised to consult certified financial experts before making any investment decisions.)
