Urban Company Limited, India’s leading technology-driven, full-stack online services marketplace, is set to launch its much-awaited Initial Public Offering (IPO) in September 2025. The company has established itself as a trusted platform connecting consumers with verified service professionals across categories such as home maintenance, beauty, wellness, appliance servicing, and repair.

With its IPO, Urban Company seeks to raise ₹1,900 crore, combining a fresh issue and an offer for sale (OFS), paving the way for investors to participate in its growth journey.

About Urban Company Limited

Founded by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company has grown rapidly into one of India’s most trusted brands for home services and beauty care. The platform allows users to conveniently book services like cleaning, pest control, plumbing, carpentry, painting, appliance repair, skincare, hair grooming, and massage therapy.

The company operates with a technology-first approach, ensuring seamless booking, transparent pricing, and quality-driven services. With over a decade of leadership from its promoters and a strong management team, Urban Company has become a household name for modern consumers seeking reliable on-demand services.

IPO Details

• IPO Type: Book Built Issue

• Total Issue Size: ₹1,900 crore

  • Fresh Issue: 4.58 crore shares worth ₹472 crore

  • Offer for Sale (OFS): 13.86 crore shares worth ₹1,428 crore

• Price Band: ₹98 to ₹103 per share

• Market Capitalisation at upper band: ₹14,789.55 crore

• Lot Size: 145 shares

• Minimum Investment for Retail Investors: ₹14,935 (145 shares)

• Minimum Investment for HNIs: ₹2,09,090 (2,030 shares = 14 lots)

• Subscription Period: September 10, 2025 to September 12, 2025

• Allotment Date: September 15, 2025

• Listing Date: September 17, 2025 on NSE and BSE

The IPO is managed by top global and Indian financial institutions including Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial. The registrar for the issue is MUFG Intime India Private Limited.

Grey Market Premium (GMP)

As of September 6, 2025, the Grey Market Premium (GMP) for Urban Company IPO is ₹17, indicating an expected listing price of ₹130 against the upper price band of ₹103. This implies potential listing gains of 16.50%.

However, investors should note that GMP is unofficial and unregulated, based entirely on demand-supply dynamics in the unorganised market. It can change rapidly and should be considered only as an indicator, not as a guarantee of returns.

Financial Performance

Urban Company has demonstrated strong revenue growth and a clear turnaround in profitability over the last three years:

• Revenue from Operations:

  • FY23: ₹7,262.38 million

  • FY24: ₹9,279.91 million

  • FY25: ₹12,606.77 million

  • Q1 FY26 (ended June 30, 2025): ₹3,984.87 million

• EBITDA:

  • FY23: -₹2,745.99 million (loss)

  • FY24: -₹467.28 million (loss)

  • FY25: ₹760.24 million (profit)

  • Q1 FY26: ₹178.22 million (profit)

• Profit After Tax (PAT):

  • FY23: -₹3,124.84 million (loss)

  • FY24: -₹927.72 million (loss)

  • FY25: ₹2,397.65 million (profit)

  • Q1 FY26: ₹69.38 million (profit)

This performance reflects consistent revenue growth and a turnaround in profitability, making the IPO more attractive to investors.

Valuation Metrics

• Pre-Issue EPS (FY25): ₹1.66

• Post-Issue EPS (FY25): ₹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: ₹0.20

• P/E (annualised): 515x

These valuation metrics suggest that the IPO is fully priced, meaning investors are paying a premium for Urban Company’s growth potential and brand equity.

Objectives of the IPO

Urban Company plans to use the net proceeds from the fresh issue for:

1. ₹1,900 million for technology development and cloud infrastructure.

2. ₹750 million for lease payments for offices.

3. ₹900 million for marketing activities.

4. Balance towards general corporate purposes.

This indicates a strong focus on scaling technology, expanding operations, and strengthening brand visibility.

Allotment Process

The allotment will be finalised on September 15, 2025, and investors can check their allotment status on the registrar’s website by:

1. Selecting “Urban Company Limited IPO” from the dropdown list.

2. Entering application number, PAN, or DP Client ID.

3. Submitting details to view allotment.

Investor Outlook

• Strengths: Strong brand, scalable platform, consistent revenue growth, and profitable business model in FY25.

• Risks: High valuations, competitive market, and reliance on service professionals’ quality.

• Listing Gains Potential: GMP suggests ~16.5% listing gains, making it attractive for short-term investors.

Conclusion

The Urban Company IPO is one of the most awaited public issues of 2025. With a strong brand presence, solid financial turnaround, and focus on technology-driven growth, it presents an appealing opportunity.

While the IPO is fully priced, the GMP trend indicates decent listing gains. For investors with higher risk appetite, this IPO can be considered for short-term listing gains as well as long-term exposure to India’s growing on-demand services market.

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.