On Wednesday, 17 September 2025, Urban Company launched its new IPO (Initial Public Offering), making a strong entrance on Dalal Street. Shares of the tech focused home services company opened at Rs 162.25 on the NSE, showcasing a 57.5% surge from its issue price of Rs 103. The BSE debut was also impressive, with shares starting at Rs 161, reflecting a 56% increase.
The Rs 1,900 crore IPO was highly sought after, with an overall subscription rate of 108 times. QIBs (Qualified Institutional Buyers) showed the most interest, with a 147.35 subscription rate, followed by NIIs (Non-Institutional Investors) at 77.82 and retail investors at 41.49. Before the IPO, the grey market indicated positive sentiment, with a GMP (Grey Market Premium) of around Rs 53 per share, hinting at a strong listing expectation near Rs 155.
Founded in 2014, Urban Company specializes in various home services, including beauty, wellness, appliance repairs and cleaning. It serves millions in India and is expanding internationally. In FY2025, the company reported revenue of Rs 1,144.5 crore, a 38% increase from the previous year, reflecting its growth in services and new customer acquisition.
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Urban Company is now profitable, turning losses from last year into net profits and better profit margins. The market values the company highly, with a P/E (price-to-earnings) ratio of about 54x, making it pricier than other companies in its sector. This ratio shows that investors believe in its future growth and leadership.
Experts advise cautious steps. Those who received shares should consider holding them long-term and new investors should wait to see how the stock performs before buying. Prashanth Tapse from Mehta Equities noted that the stock has solid long term growth potential despite its high valuation. Shivani Nyati from Swastika Investmart suggested partial profit-taking on listing day, stressing Urban Company’s unique position in the online home services market with strong demand.
The money raised in the IPO will go toward tech upgrades, service expansion and expanding to new areas. Analysts believe these moves will strengthen Urban Company’s position as it meets the growing demand for reliable, tech-driven solutions both at home and abroad. Urban Company is making a significant impact in India's digital economy with strong growth, an innovative service model and positive market sentiment.
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