The Urban Company IPO is one of the most anticipated public offerings of 2025, as the technology-driven, full-stack services marketplace gears up to list its shares on the BSE and NSE. The company, which has become a household name in India for home and beauty services, is opening its Initial Public Offering (IPO) worth ₹1,900.00 crore on September 10, 2025. The subscription window will remain open until September 12, 2025, after which the allotment is expected on September 15, 2025, and listing is tentatively scheduled for September 17, 2025.

The IPO consists of a Fresh Issue of 4.58 crore equity shares aggregating to ₹472 crore and an Offer for Sale (OFS) of 13.86 crore shares worth ₹1,428 crore. The price band has been fixed at ₹98 to ₹103 per equity share, and at the upper price band of ₹103, the company’s market capitalisation will stand at approximately ₹14,789.55 crore.

The lot size for retail investors is set at 145 shares, requiring a minimum investment of ₹14,935. For High Net Worth Individuals (HNIs), the minimum application is for 14 lots (2,030 shares), translating into an investment of ₹2,09,090.

Business Overview

Urban Company is a well-known brand offering on-demand home and beauty services through its digital platform. It has built a strong reputation by connecting consumers with trained independent professionals who provide services such as cleaning, pest control, plumbing, carpentry, appliance servicing, repair, painting, skincare, hair grooming, and massage therapy. The company positions itself as a quality-driven marketplace, delivering convenience and reliability to urban households.

The platform leverages technology and cloud-based solutions to provide seamless experiences both for customers and service professionals. This two-sided marketplace ensures steady demand for professionals while giving consumers the ease of booking services at their convenience.

Objectives of the IPO

Urban Company has outlined specific objectives for deploying the net proceeds from the IPO. These include:

1. ₹1,900 million earmarked for expenditure on new technology development and cloud infrastructure.

2. ₹750 million allocated for lease payments for offices.

3. ₹900 million designated for marketing activities to expand customer reach.

4. Funds will also be utilised for general corporate purposes.

These objectives highlight the company’s intent to strengthen its technological backbone, expand operations, and enhance brand visibility in an increasingly competitive services marketplace.

Grey Market Premium (GMP)

As of September 6, 2025, the Urban Company IPO GMP is quoted at ₹17, representing a premium of around 16.50% over the upper price band of ₹103. This pegs the expected listing price at around ₹130 per share. However, it is important to note that Grey Market Premiums are unofficial indicators and are highly volatile, depending purely on demand and supply in the unregulated space. Investors are advised not to rely solely on GMP as it does not reflect the official price discovery process on stock exchanges.

Lead Managers and Registrar

The Book Running Lead Managers (BRLMs) for the IPO are:

• Kotak Mahindra Capital Company Limited

• Morgan Stanley India Company Private Limited

• Goldman Sachs (India) Securities Private Limited

• JM Financial Limited

The registrar to the issue is MUFG Intime India Private Limited (formerly Link Intime India Private Limited), which will handle IPO applications, allotment, and investor communications.

Allotment and Listing Details

The IPO allotment will be finalised on September 15, 2025. Investors can check their allotment status by visiting the registrar’s website and entering details such as application number, PAN, or DP Client ID. Once allotments are complete, shares will be credited to Demat accounts, and trading is expected to begin on September 17, 2025 on both NSE and BSE.

Market Position and Growth Strategy

Urban Company has established itself as one of the most trusted service platforms in India, with strong consumer loyalty and repeat usage. Its future strategy includes expanding services across Tier 2 and Tier 3 cities, investing in AI-driven service matching, and providing enhanced training for professionals to ensure consistent service quality.

The company’s growth model combines a technology-first approach with a focus on service professional empowerment. By building a strong pool of trained partners, Urban Company aims to address the challenges of quality consistency and create a scalable services marketplace that can cater to India’s rapidly urbanising population.

Investor Outlook

Analysts believe the Urban Company IPO provides investors with an opportunity to participate in the growth of India’s home services sector, which is expected to expand significantly due to changing consumer lifestyles, increasing disposable incomes, and higher adoption of digital platforms.

However, as with all IPOs, potential investors should consider both opportunities and risks. While Urban Company enjoys strong brand recognition and demand momentum, challenges include high competition, dependence on freelance workforce, and regulatory changes in the gig economy.

Conclusion

The Urban Company IPO represents not only a significant milestone for the company but also a key event for India’s startup ecosystem, as one of the country’s most recognisable platforms prepares to enter the public market. With a strong technology foundation, ambitious growth plans, and a well-diversified services portfolio, Urban Company is well-positioned to attract investor interest.

At the same time, investors must weigh the risks carefully, especially given the competitive environment and uncertainties around long-term profitability. As the IPO opens for subscription from September 10 to September 12, 2025, and with listing expected on September 17, the market will soon reveal whether Urban Company can deliver on its promise and live up to investor expectations.

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.