Urban Company made a spectacular entry into the Indian stock markets on Wednesday, September 17, delivering a listing performance that exceeded even the most
optimistic forecasts. The home services platform, saw its shares open at Rs 161 on the BSE and Rs 162.25 on the NSE, a stunning 56 per cent and 57.5 per cent premium over its issue price of Rs 103. At 1:10 pm, Urban Company shares were trading 3.39 per cent higher at Rs 166.45. Listing Surpassed Grey Market Hype Analysts had predicted a strong debut, with grey market signals suggesting a 40-50 per cent pop. However, Urban Company exceeded those expectations. According to data from investorgain.com, the IPO was trading at a Rs 51 premium in the unofficial market just ahead of its debut, indicating positive investor sentiment. Master Capital Services noted, “Urban Company's amazing debut at Rs 162.25 listed at a 57.5 per cent premium over its issue price of Rs 103. The IPO was well subscribed overall at 108.98 times, led by a strong QIB subscription of 147x. Urban Company Ltd. is a tech-enabled marketplace for home and beauty services and operates in 51 cities in India, UAE and Singapore. They connect customers with trained service professionals to offer an array of services, including cleaning, repairs and beauty. Urban Company leverages the hyperlocal model to provide customers with efficient and quality services.” “Investors who get IPO should consider holding the stock for the long term. On the other hand, those who didn’t get shares in the IPO can buy when the price declines,” the firm added. Massive Investor Demand Across Segments Urban Company’s IPO was a resounding success, drawing overwhelming participation from all categories of investors. The overall subscription stood at a staggering 103.63 times. Retail investors subscribed 39.25 times Non-Institutional Investors (NIIs) subscribed 74.04 times Qualified Institutional Buyers (QIBs) led the demand with 140.20 times subscription This made it the most heavily subscribed IPO in India so far this year, as per Bloomberg. Fundamentals And Financials Impress The Rs 1,900 crore public offering consisted of a fresh issue worth Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore. The price band was fixed between Rs 98 and Rs 103 per share. Urban Company’s recent financial turnaround likely played a role in attracting strong investor interest. In FY25, the company reported Rs 1,144 crore in revenue, marking a 38 per cent year-on-year growth, and turned around its finances with Rs 240 crore in profits, a stark reversal from the Rs 93 crore loss in FY24.
