Urban Company’s ₹1,900 crore IPO was fully subscribed within just two hours of launch on September 10, 2025, reflecting intense investor interest in the tech-enabled home services platform
1. Subscription by Investor Type
- The retail segment saw exceptional demand, being subscribed 3.24 times, despite constituting only around 18% of the overall issue
- The institutional portion, which accounts for the majority, achieved 20% subscription, while non-institutional investors subscribed 1.39 times
2. Grey Market Signal
The Grey Market Premium (GMP) surged to around 35%, suggesting strong listing expectations and investor optimism
3. IPO Structure & Pre-IPO Anchors
- The IPO comprises a fresh issue of ₹472 crore and an offer-for-sale (OFS) of ₹1,428 crore, offered by early backers such as Accel India and Elevation Capital
- Ahead of public subscription, the company raised ₹854 crore from anchor investors at ₹103 per share—the upper end of the price band The Economic Times.
4. Pricing, Timeline & Valuation
- The price band has been set between ₹98 and ₹103, implying a valuation of approximately ₹14,000–15,000 crore at the upper band
- The subscription window spans September 10 to September 12, with the listing expected on September 17
5. Financial Performance & Market Position
- Urban Company reported ₹1,144 crore in revenue for FY25, marking a 38% year-on-year rise, and achieved profitability with a net profit of around ₹240 crore
- The company operates across 51 cities, offering services ranging from beauty to repairs, and leverages AI-driven technology to power its platform
Why Investors Are Excited
- Profitable growth: Rare among startup IPOs, this profitability reassures investors about sustainability.
- Tech-enabled convenience: High demand for organized home services strengthens Urban Company’s category leadership.
- Strong grey market cues: A 35% GMP signals strong listing-day gain expectations.
- Market maturity: The Indian IPO market is surging, with Urban Company riding an increasing wave of investor interest in digital consumer plays
