Urban Company IPO: Brokerages see potential for expansion; what latest GMP signals

Urban Company IPO: New-age online marketplace Urban Company is set to launch its Rs 1,900 crore-initial public offering (IPO) on Wednesday, September 10. The issue, before kicking-off for bidding, is currently signaling healthy listing gains for the investors, if one goes by the latest signals based on its latest grey market premium (GMP). It has garnered positive views from analysts so far.

Urban Company shall be selling its shares in the range of 98-103 apiece, where investors can apply for a minimum of 145 equity shares and its multiples thereafter. Of the Rs 1,900 crore to be raised, Rs 472 crore count for the fresh issue, while existing shareholders will offload Rs 1,428 crore from their stake. The issue shall close for bidding on Friday, September 12.

Last heard, Urban Company IPO was commanding a grey market premium of Rs 19-20 per share, suggesting a listing gain of 18-19 per cent for the investors at the upper end of the price band. The anchor book details for the issue shall be announced on Tuesday, September 09, 2025.

Brokerage firms tracking the issue are mostly positive on the issue and suggest subscribing to it. They are positive on the company's scope of expansion, shift towards organized services sector, strong technical backing, rising and repeat demand from customers and improving profitability.

Urban Company provides a range of household services, catering to requirements of urban consumers. It has a large addressable market currently being catered to by the unorganized industry. Net transaction value (NTV)/revenue for the company has grown at a CAGR of 25.5 per cent/34.1 per cent over FY 23-25, said SBI Securities.

"Profitability is on an improving trend and is expected to breakeven at the EBITDA level in FY26E. At the upper band of the issue price, Urban Company is valued at 12.9 times P/S on post issue capital. We recommend subscribing to the issue with a long-term investment horizon," it added.

Urban Company is a technology driven, full-stack online services marketplace for quality driven solutions and services in 51 cities across India, UAE and Singapore. The market of Saudi Arabia is served through a JV. It operates through its three business verticals- India consumer services; Native; and international business

Its platform enables customers to easily order services like cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on demand home-help assistance, painting, skincare, hair grooming, massage therapy, etc which are delivered by trained and independent service professionals.

Urban Company looks set to grow steadily as more people turn to trusted, convenient home services. Its hyper local approach, strong tech platform, and focus on training professionals give it an edge, while new categories and affordable options are likely to keep customers coming back and spending more, said Arihant Capital Markets.

"With rising demand for organized services in urban India and abroad, the company has a long runway for expansion. At the upper band of Rs 103, the issue is valued at Price/Sales of 12.92 times. We are recommending a 'subscribe for listing gains' rating for this issue," he said.

Urban Company turned a profit table in the financial year ended on March 31, 2025. It reported a net profit of Rs 239.77 crore with a revenue of Rs 1,260.68 crore for the year. The company clocked net loss of Rs 92.77 crore with a revenue of Rs 927.99 crore for the financial year 2023-24. At the IPO price, Urban Company is commanding a total market capitalization close to Rs 14,800 crore.

Kotak Mahindra Capital Company, Morgan Stanley India Company and Goldman Sachs (India) and JM Financial are the book running lead managers for the issue, while MUFG Intime India is registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Wednesday, September 17.