Urban Company, one of India’s leading online home and beauty services platforms, is set to launch its Initial Public Offering (IPO) on September 10, 2025, marking one of the most anticipated public issues in the technology-driven services sector. With a blend of strong growth, experienced promoters, and a proven business model, this IPO has drawn the attention of both retail and institutional investors.

The company has become synonymous with quality-driven online services, ranging from home cleaning, plumbing, pest control, carpentry, and appliance repair to skincare, hair grooming, beauty treatments, and massage therapy. Delivered by a network of trained and independent professionals, Urban Company has built its reputation as a full-stack, technology-enabled service marketplace.

Urban Company IPO Details

The Urban Company IPO is a Book Built Issue of ₹1,900 crore. This comprises:

• Fresh Issue: 4.58 crore shares worth ₹472 crore

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

The IPO subscription window opens on September 10, 2025, and closes on September 12, 2025. The allotment will be finalized by September 15, 2025, while the shares are scheduled to be listed on the BSE and NSE on September 17, 2025.

• Price Band: ₹98 – ₹103 per equity share

• Lot Size: 145 shares

• Minimum Investment for Retail Investors: ₹14,935 (1 lot)

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

• Market Capitalisation at upper band (₹103/share): ₹14,789.55 crore

The lead managers of the issue are Kotak Mahindra Capital Company Limited, Morgan Stanley India, Goldman Sachs (India) Securities, and JM Financial Limited, while MUFG Intime India Private Limited is the registrar.

Urban Company IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Urban Company stands at ₹17 as of September 6, 2025, indicating potential listing gains of approximately 16.50%.

Day-wise GMP Trend (as of September 6, 2025):

• IPO Price: ₹103

• Expected Listing Price: ₹130

• GMP: ₹17 (16.50%)

It is important to note that GMP is an unofficial indicator, based on unregulated market activity, and should only be viewed for educational purposes.

Company Profile and Business Model

Urban Company has revolutionised the home services market in India by creating a tech-enabled, demand-driven ecosystem. Customers can book services at their convenience, and professionals, after rigorous training and onboarding, deliver them at home.

The three co-founders and promoters—Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra—each bring more than a decade of experience in technology and services. Together, they have expanded Urban Company’s presence in India and globally, making it a go-to platform for household and personal care solutions.

Financial Performance of Urban Company

Urban Company has demonstrated significant growth and financial turnaround in recent years.

Revenue from Operations:

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

• FY25: ₹12,606.77 million

• FY24: ₹9,279.91 million

• FY23: ₹7,262.38 million

EBITDA:

• FY25: ₹760.24 million

• FY24: -₹467.28 million

• FY23: -₹2,745.99 million

Profit After Tax (PAT):

• Q1 FY26: ₹69.38 million

• FY25: ₹2,397.65 million

• FY24: -₹927.72 million

• FY23: -₹3,124.84 million

This turnaround highlights improved cost management and profitability, making Urban Company’s IPO more appealing to investors seeking growth-oriented firms.

Key Performance Indicators (KPIs)

• 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 (Q1 FY26): ₹0.2

• Annualised P/E: 515x

These figures suggest the IPO is fully priced, reflecting strong investor demand but leaving limited margin for error.

Objectives of the IPO

The company plans to utilise the net proceeds from the fresh issue as follows:

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

2. ₹750 million for lease payments for offices

3. ₹900 million for marketing and customer acquisition

4. Balance for general corporate purposes

These investments are aimed at strengthening Urban Company’s technological backbone, expanding its physical presence, and scaling its customer base.

How to Check Urban Company IPO Allotment Status

Investors can check their IPO allotment status from September 15, 2025 onwards:

1. Visit the registrar’s website (MUFG Intime India Private Limited).

2. Select Urban Company Limited IPO from the dropdown.

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

4. Submit details to view allotment status.

This step helps investors quickly confirm whether they have secured shares in the IPO.

Expert Review – Apply or Avoid?

The Urban Company IPO has drawn attention for its ₹17 GMP premium, robust revenue growth, and successful turnaround to profitability. However, the high valuation multiples (P/E above 60x) make it a risky bet for conservative investors.

• For Risk-Averse Investors: The IPO may appear expensive compared to industry peers, and thus carries valuation risk.

• For Risk-Taking Investors: The growth trajectory, strong market positioning, and positive GMP suggest potential listing gains.

Recommendation: Apply with caution. It is suitable for risk-tolerant investors seeking listing gains, but not ideal for long-term conservative portfolios.

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.