Urban Company is a technology-driven, full-stack online services marketplace that provides home and beauty solutions to consumers in a convenient and professional manner. The company has made significant strides in building a trusted platform that connects trained and independent service professionals with customers seeking services such as cleaning, pest control, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.

The company has now entered the capital market with its Initial Public Offering (IPO), which is a major milestone in its growth journey. The Urban Company IPO is a Book Built Issue amounting to ₹1900 crore, consisting of a Fresh Issue of 4.58 crore shares worth ₹472 crore and an Offer for Sale (OFS) of 13.86 crore shares totaling ₹1428 crore.

The subscription window for the IPO is scheduled to open on 10 September 2025 and will close on 12 September 2025. The allotment is expected to be finalized on 15 September 2025, with the tentative listing date set for 17 September 2025 on both BSE and NSE.

IPO Price Band and Market Capitalisation

The price band for the Urban Company IPO is set at ₹98 to ₹103 per equity share. At the upper end of this price band, the company’s market capitalisation will be ₹14,789.55 crore.

The lot size for the IPO is 145 shares. Retail investors need to make a minimum investment of ₹14,935 (145 shares). For High-Net-Worth Individuals (HNIs), the minimum investment requirement is 14 lots (2,030 shares), which translates into ₹2,09,090.

Book Running Lead Managers and Registrar

The IPO is being managed by some of the leading investment banks and financial institutions. The Book Running Lead Managers (BRLMs) for the issue are:

• Kotak Mahindra Capital Company Limited

• Morgan Stanley India Company Private Limited

• Goldman Sachs (India) Securities Private Limited

• JM Financial Limited

The Registrar for the issue is MUFG Intime India Private Limited (formerly known as Link Intime India Private Limited).

Grey Market Premium (GMP) Trend

One of the most tracked aspects of any IPO is its Grey Market Premium (GMP). For Urban Company, the GMP is expected to be ₹17. Based on this, the expected listing price could be around ₹130 per share, reflecting an estimated 16.50% premium over the issue price.

However, it is important to note that the Grey Market is unregulated and trades happen informally between investors. Hence, no price discovery or guaranteed accuracy should be expected from these GMP trends. They should be seen purely for educational and informational purposes.

Day-wise GMP Trend

As of 06 September 2025, the IPO price is ₹103 with the expected listing price of ₹130, showing a GMP of ₹17 (16.50%).

Allotment Date and How to Check Allotment Status

The Urban Company IPO allotment date is 15 September 2025. Investors can check their allotment status through the registrar’s website by following these steps:

1. Visit the IPO allotment status page.

2. Select Urban Company Limited IPO from the dropdown menu.

3. Enter your application number, PAN, or DP Client ID.

4. Submit the details to view the allotment result.

This process allows investors to know whether they have been allotted shares or not.

Objectives of the IPO

Urban Company plans to utilise the net proceeds from the IPO for the following purposes:

1. ₹1900 million towards new technology development and cloud infrastructure.

2. ₹750 million towards lease payments for offices.

3. ₹900 million for marketing activities.

4. Balance funds for general corporate purposes.

These objectives indicate that the company is focusing on technology upgradation, brand expansion, and infrastructure growth, which are crucial for its long-term scalability.

Promoters and Management

Urban Company was co-founded by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, each of whom has over 10 years of experience in home services and technology industries. They continue to lead the day-to-day operations of the company and serve as Executive Directors on the board.

The management team also comprises senior professionals with vast industry and functional expertise, ensuring a strong foundation for strategic growth.

Financial Performance

Urban Company has shown a steady improvement in financial performance over the years.

• Revenue from Operations:

  • June 30, 2025: ₹3,984.87 million

  • FY25: ₹12,606.77 million

  • FY24: ₹9,279.91 million

  • FY23: ₹7,262.38 million

• EBITDA:

  • FY25: ₹178.22 million

  • FY24: ₹760.24 million

  • FY23: ₹ -467.28 million

  • FY22: ₹ -2,745.99 million

• Profit After Tax (PAT):

  • FY25: ₹69.38 million

  • FY24: ₹2,397.65 million

  • FY23: ₹ -927.72 million

  • FY22: ₹ -3,124.84 million

These numbers indicate a turnaround in profitability, as the company has moved from losses in FY22 and FY23 to profits in FY24 and FY25.

Valuation Metrics

Some of the key valuation metrics of Urban Company are as follows:

• Pre-issue EPS: ₹1.66

• Post-issue EPS: ₹1.67

• Pre-issue P/E ratio: 62.05x

• Post-issue P/E ratio: 61.68x

• ROE (FY25): 13.35%

• RoNW (FY25): 13.35%

• Annualised EPS: ₹0.2

• Annualised P/E: 515x

These valuations suggest that the IPO is fully priced, leaving limited margin for error.

Investment Recommendation

Given the company’s financial growth, strong promoter background, and brand leadership, the IPO has potential. However, considering the high valuation, it may be best suited for risk-tolerant investors looking for listing gains.

The GMP indicates an expected 16.50% gain on listing day, but long-term investors should carefully evaluate the company’s ability to sustain profitability and growth.

The Upcoming IPOs in this week and coming weeks are Karbonsteel Engineering, Taurian MPS, L. T. Elevator, Galaxy Medicare, Airfloa Rail Technology, Dev Accelerator, Jay Ambe Supermarkets, Urban Company, Shringar House of Mangalsutra, .

The Current active IPO are Nilachal Carbo Metalicks, Krupalu Metals, Vashishtha Luxury Fashion, Sharvaya Metals, Vigor Plast India, Austere Systems.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.