Urban Company Limited operates a technology-driven, full-stack online services marketplace, offering quality home and beauty services across India. The platform allows consumers to easily book services including cleaning, pest control, plumbing, carpentry, appliance servicing, painting, skincare, hair grooming, and massage therapy, delivered by trained independent service professionals at the convenience of the consumer.

The company’s mission is to modernize and simplify access to professional home and beauty services, leveraging technology, operational expertise, and industry best practices.

IPO Details

The Urban Company IPO is a Book Built Issue of ₹1,900.00 crore, consisting of:

• Fresh Issue: 4.58 crore shares worth ₹472.00 crore

• Offer for Sale (OFS): 13.86 crore shares totaling ₹1,428.00 crore

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

• Lot Size: 145 shares

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

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

• Market Capitalisation at ₹103/share: ₹14,789.55 crore

The IPO opens on September 10, 2025, closes on September 12, 2025, and allotment will be finalized on September 15, 2025. The shares are expected to list on NSE & BSE on September 17, 2025.

The book running lead managers are Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial, while MUFG Intime India serves as the registrar.

Grey Market Premium (GMP)

The Grey Market Premium for the IPO is ₹17, indicating potential listing gains of 16.50%. GMP is informational only, reflecting unorganized market expectations and not guaranteed listing performance.

Company Management and Promoters

Urban Company is promoted and managed by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, each with over 10 years of experience in home services and technology. They serve as Executive Directors and oversee strategic decisions, daily operations, and growth initiatives. The company also has an experienced management team with domain expertise across operations, technology, and service delivery.

Financial Performance

Urban Company has shown steady revenue growth over the past few years:

• Revenue (₹ Millions):

  • FY25: 12,606.77

  • FY24: 9,279.91

  • FY23: 7,262.38

  • Period ended Jun 30, 2025: 3,984.87

• EBITDA (₹ Millions):

  • FY25: 760.24

  • FY24: -467.28

  • FY23: -2,745.99

  • Period ended Jun 30, 2025: 178.22

• Profit After Tax (₹ Millions):

  • FY25: 2,397.65

  • FY24: -927.72

  • FY23: -3,124.84

  • Period ended Jun 30, 2025: 69.38

Key Performance Metrics:

• Pre-issue EPS FY25: ₹1.66

• Post-issue EPS FY25: ₹1.67

• Pre-issue P/E: 62.05x | Post-issue P/E: 61.68x

• ROE FY25: 13.35% | RoNW: 13.35%

These figures indicate steady growth and strong recovery from previous losses, positioning the company as a high-growth technology-enabled services marketplace.

Objectives of the IPO

Urban Company intends to deploy IPO proceeds for:

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

2. ₹750 million for office lease payments

3. ₹900 million for marketing activities

4. Remaining funds for general corporate purposes

This will enhance platform technology, service scalability, brand visibility, and operational efficiency, supporting long-term growth in India and potential expansion in international markets.

Subscription & Listing Process

Investors can subscribe to the IPO from September 10-12, 2025. Allotment will be live on the registrar website from September 15, 2025, using PAN, application number, or DP Client ID. The IPO is expected to list on NSE & BSE on September 17, 2025.

Investment Outlook

The IPO is fully priced, with post-issue P/E of 61.68x and a Grey Market Premium of ₹17 (16.50%). The company is suited for risk-tolerant investors looking for long-term growth in a technology-driven home services marketplace.

Caution for Investors: Given the high P/E ratio and technology sector risk, short-term listing gains are uncertain. Investors should consider long-term growth potential and market positioning before subscribing.

Conclusion

Urban Company’s IPO offers a unique opportunity to invest in a fast-growing, tech-enabled services platform catering to a wide range of home and beauty services. With a strong promoter background, experienced management team, and robust revenue recovery, the IPO is attractive for growth-focused investors, but short-term listing gains may be limited.

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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