Urban Company, India’s leading technology-driven home services marketplace, has launched its much-awaited Initial Public Offering (IPO) amounting to ₹1,900 crore. The issue will be open for subscription from September 10 to September 12, 2025. The IPO consists of a fresh issue of 4.58 crore shares worth ₹472 crore and an offer for sale (OFS) of 13.86 crore shares worth ₹1,428 crore.

The IPO price band is fixed between ₹98 and ₹103 per share, with a lot size of 145 shares per application. Retail investors need a minimum investment of ₹14,935, while High-Net-Worth Individuals (HNIs) must invest in at least 14 lots (2,030 shares) amounting to ₹2,09,090. At the upper price band of ₹103, Urban Company’s estimated market capitalisation will be ₹14,789.55 crore.

The allotment of shares is expected on September 15, 2025, with a tentative listing date of September 17, 2025 on both BSE and NSE. Investors can check their allotment status online by visiting the registrar’s portal (MUFG Intime India Pvt Ltd) and entering details like application number, PAN, or DP client ID.

Urban Company provides a wide range of home and beauty services, including cleaning, pest control, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy, all delivered at customers’ convenience by trained professionals. Founded by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, the company has built a strong reputation in the technology-enabled services sector.

The financial performance of the company indicates consistent growth. Revenues grew from ₹7,262.38 million in FY23 to ₹12,606.77 million in FY24, and further to ₹3,984.87 million for the quarter ended June 30, 2025. The company turned profitable in FY24, posting a Profit After Tax (PAT) of ₹2,397.65 million, compared to a loss of ₹927.72 million in FY23. For FY25, the company reported a PAT of ₹69.38 million.

Urban Company’s pre-issue EPS is ₹1.66 and post-issue EPS is ₹1.67, with a P/E ratio of 61.68x at the upper price band. The company’s Return on Equity (ROE) stands at 13.35%. These metrics suggest that while the IPO is fully priced, it demonstrates strong potential for growth given the company’s increasing revenues and profitability.

The Grey Market Premium (GMP) for the Urban Company IPO is currently ₹17, which reflects an expected listing gain of 16.5%, projecting an estimated listing price of ₹130 per share. However, experts caution that GMP is based on unofficial demand and supply and should only be considered as an indicator, not a guarantee.

Urban Company plans to utilise the IPO proceeds for technology development (₹1,900 million), lease payments for offices (₹750 million), marketing activities (₹900 million), and general corporate purposes.

With Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs India, and JM Financial as the book-running lead managers, and MUFG Intime India Pvt Ltd as registrar, the IPO is backed by top financial institutions.

Given the company’s robust business model, rising consumer demand in the home services segment, and improved financial performance, experts recommend that risk-tolerant investors may subscribe for potential listing gains, while long-term investors should carefully consider valuations before investing.

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.

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