Urban Company IPO: Limited short-term gains likely; key triggers, latest GMP & more
Urban company has fixed its price band between Rs 98-103 apiece to raise a total of Rs 1,900 crore via its primary stake sale, which include a fresh share sale Rs 472 crore and an OFS of Rs 1,428 crore.
- Sep 9, 2025,
- Updated Sep 9, 2025 3:55 PM IST
The IPO of Urban Company is opening on Wednesday, September 10 and the issue shall close for bidding Friday, September 12. The company has fixed its price band between Rs 98-103 apiece to raise a total of Rs 1,900 crore via its primary stake sale, which include a fresh share sale Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore.
Urban Company IPO has a lot size of 145 equity shares. At the upper end of its price band, each lot of Urban Company will cost Rs 14,935. It is currently commanding a grey market premium of Rs 34-35 per share, suggesting a 35 per cent upside for the investors over the upper cent of the price band.
Urban Company benefits from strong network effects, as consumers and service professionals mutually strengthen platform growth. It improves service quality through in-house training, tools, and defined standards, while its technology platform ensures smooth fulfilment, customer acquisition, and professional empowerment, said Anand Rathi Shares & Stock Brokers.
"It is a trusted and established brand further reinforces its market position and long-term consumer loyalty along with scale and technological capabilities have helped us enhance our profitability. The issue valued at P/E of 65.7 times to its FY25 earnings with P/S of 12.9 and market cap of Rs 14,789.5 crore. The IPO is fully priced and recommend a 'subscribe for long term' rating," it said.
It is sustained high growth and margin expansion are essential to justify this valuation, leaving limited room for near-term, said Rajan Shinde, Research Analyst, Mehta Equities. "We recommend risk-tolerant investors seeking exposure to the rapidly expanding home services sector to 'subscribe' the IPO for a long-term perspective only," he said.
The basis for allotment for Urban Company IPO will be finalized on Monday, September 15. Shares, if allotted shall be credited in the demat accounts on Tuesday, September 16. Refunds shall also be initiated on the same day. Shares of the company shall be listed at the bourses on Wednesday, September 17.
Urban Company is a category-leading, tech-enabled home services platform that has cracked its way to profitability, strengthened consumer trust, and built strong network effects — giving it a long runway in an underpenetrated, high-growth market, said HDFC Securities in its note.
It has cited multi-category, hyperlocal, home services marketplace benefits from network effects; established brand trusted by consumers; improved quality of service professionals through in-house training and access to tools and consumables; robust technology platform powering service fulfilment, consumer growth and service professional empowerment; innovation and product development capabilities; scale and technological capabilities have helped achieve profitability; and Promoter led company with a professional management team and an experienced board as the key competitive strengths.
The IPO of Urban Company is opening on Wednesday, September 10 and the issue shall close for bidding Friday, September 12. The company has fixed its price band between Rs 98-103 apiece to raise a total of Rs 1,900 crore via its primary stake sale, which include a fresh share sale Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore.
Urban Company IPO has a lot size of 145 equity shares. At the upper end of its price band, each lot of Urban Company will cost Rs 14,935. It is currently commanding a grey market premium of Rs 34-35 per share, suggesting a 35 per cent upside for the investors over the upper cent of the price band.
Urban Company benefits from strong network effects, as consumers and service professionals mutually strengthen platform growth. It improves service quality through in-house training, tools, and defined standards, while its technology platform ensures smooth fulfilment, customer acquisition, and professional empowerment, said Anand Rathi Shares & Stock Brokers.
"It is a trusted and established brand further reinforces its market position and long-term consumer loyalty along with scale and technological capabilities have helped us enhance our profitability. The issue valued at P/E of 65.7 times to its FY25 earnings with P/S of 12.9 and market cap of Rs 14,789.5 crore. The IPO is fully priced and recommend a 'subscribe for long term' rating," it said.
It is sustained high growth and margin expansion are essential to justify this valuation, leaving limited room for near-term, said Rajan Shinde, Research Analyst, Mehta Equities. "We recommend risk-tolerant investors seeking exposure to the rapidly expanding home services sector to 'subscribe' the IPO for a long-term perspective only," he said.
The basis for allotment for Urban Company IPO will be finalized on Monday, September 15. Shares, if allotted shall be credited in the demat accounts on Tuesday, September 16. Refunds shall also be initiated on the same day. Shares of the company shall be listed at the bourses on Wednesday, September 17.
Urban Company is a category-leading, tech-enabled home services platform that has cracked its way to profitability, strengthened consumer trust, and built strong network effects — giving it a long runway in an underpenetrated, high-growth market, said HDFC Securities in its note.
It has cited multi-category, hyperlocal, home services marketplace benefits from network effects; established brand trusted by consumers; improved quality of service professionals through in-house training and access to tools and consumables; robust technology platform powering service fulfilment, consumer growth and service professional empowerment; innovation and product development capabilities; scale and technological capabilities have helped achieve profitability; and Promoter led company with a professional management team and an experienced board as the key competitive strengths.