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SBI Mutual Fund has increased its stake in Urban Company by nearly 4 percent through open market purchases worth ₹632 crore, even as the company’s shares declined amid broader market gains.
According to exchange data, SBI Mutual Fund acquired approximately 5.7 crore equity shares in two tranches on March 17—buying 3.5 crore shares at ₹109.85 apiece and another 2.2 crore shares at ₹109.83 each. The total transaction represents a 3.98 percent stake in the tech-driven home services platform. The fund house previously held a 1.89 percent stake in Urban Company as of December 2025.
Despite the significant institutional buying, Urban Company’s stock fell 2.76 percent to close at ₹110.11, weighed down by heavy trading volumes. The stock has remained range-bound over the past four sessions after hitting an all-time low.
Meanwhile, several institutional investors exited or reduced their positions in the company. DF International Partners II sold its entire 1.22 percent stake, amounting to 1.76 crore shares, at ₹109.85 per share for ₹193.9 crore.
A private equity vehicle of Wellington Management Company, Wellington Hadley Harbor AIV Master Investors (Cayman) III, also exited the company, offloading a 2.2 percent stake. The firm sold 1.58 crore shares each at ₹109.93 and ₹109.86 per share, with total proceeds of ₹349.2 crore.
Additionally, ABG Capital trimmed its holdings by selling 1.74 crore shares, equivalent to a 1.2 percent stake, at ₹109.85 per share for ₹191.2 crore. The firm had previously held a 1.36 percent stake in Urban Company as of December 2025.
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Why the Lock-in Expiry Matters?
With the lock-in period ending, a large number of shares have suddenly become tradable. Data from Nuvama Alternative and Quantitative Research shows that about 94.09 crore shares, nearly 66 percent of Urban Company’s total equity, are now free to be bought and sold in the market.
A lock-in period is meant to prevent early investors and promoters from selling immediately after a company lists. This helps keep the stock stable and builds trust among the new investors.
However, once the restriction is lifted, selling activity often increases. While this improves liquidity, it can also put pressure on the stock price if many investors choose to exit at once, as seen in Urban Company’s case.
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Stock Struggles After Strong Start
Urban Company’s stock has been under pressure for months now. It has closed lower for five straight months, which has led to a total decline of about 34 percent.
This comes after a strong debut. The stock listed at ₹162.3, a sharp 57 percent jump over its issue price of ₹103, and later climbed to a high of ₹202.
Since then, the momentum has faded. The stock is now down more than 45 percent from its peak, although it still remains slightly above its issue price.
Urban Company operates a tech-driven platform that connects customers with professionals offering home and beauty services. Managing everything from booking to service delivery.
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