Urban Company’s IPO, amounting to ₹1,900 crore, saw 103.63× subscription on its third and final day of bidding (Sept 12, 2025). The shares on offer totalled ~10.67 crore, but the bids received were for ~1,106.46 crore shares, indicating huge demand.
Subscription by Investor Categories
| Investor Category | Subscription Multiple |
|---|---|
| Qualified Institutional Buyers (QIBs) | ~140.20× |
| Non-Institutional Investors (NIIs) | ~74.04× |
| Retail Individual Investors (RIIs) | ~39.25× |
Other Key Details
- IPO Price Band: ₹98 to ₹103 per share.
- Grey Market Premium (GMP): As the issue closed, GMP rose sharply to ~45%, signaling expectations of strong listing gains.
- Use of Proceeds: Fresh issue of ~₹472 crore; remainder via Offer for Sale (OFS) by existing shareholders.
Why It Matters
- This is one of the most oversubscribed IPOs in India for 2025 among large-size offerings, showing robust investor appetite.
- High subscription across all investor categories—not only institutional—shows confidence in Urban Company’s growth outlook and its path to profitability.
- The elevated GMP suggests a likely strong listing debut; investors are expecting gains once the shares start trading.
Risks & Considerations
- The valuation is considered aggressive by some analysts, especially given prior losses and thin profit margins. India Today
- While GMP is high, grey market signals don’t always hold after listing—market sentiment and operational performance will matter.
Conclusion
Urban Company’s IPO oversubscription of ~103.6× on the final day is a strong indicator of investor confidence in India’s startup and home services ecosystem. With subscription surging across QIBs, NIIs, and retail investors and a healthy GMP, the listing is likely to reflect positive momentum. However, high valuations and market expectations mean that the company will need to deliver on growth and profitability to maintain investor trust.
