Urban Company’s ₹1,900 crore kicked off for public subscription today, with the issue subscribed 58 per cent within an hour of launch.
As of 10.54 am, the IPO was booked 0.58 times overall, with strong retail subscription at 1.61 times and the non-institutional investor (NII) segment at 0.64 times. QIBs were tepid at 0.20 times and the employee portion stood at 1.63 times.
The IPO concludes on September 12.
IPO details, anchor portion
Ahead of the IPO, the company raised ₹854 crore from marquee investors, including GIC, Fidelity, Norges Bank, Nomura, and leading domestic mutual funds, by allotting 8.29 crore equity shares at the upper price band of ₹103.
The IPO, which runs from September 10 to 12, comprises a fresh issue of ₹472 crore and an offer-for-sale (OFS) of ₹1,428 crore by existing shareholders.
The price band has been fixed in the range of ₹98–103 per share, with a minimum lot size of 145 shares. Listing is scheduled for September 17 on both BSE and NSE.
The stock is commanding a grey market premium (GMP), suggesting a 35–36 percent listing gain over the issue price.
Use of proceeds
The company plans to use funds raised for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.
What brokerages say
Brokerages, however, remain cautious on valuations. Anand Rathi has termed the IPO “fully priced” but advised subscribing with a long-term view, citing the company’s strong positioning in a ₹60 billion home services market.
While the growth potential is significant, most proceeds flow to existing shareholders, making this a high-risk, high-reward bet best suited for long-term investors willing to apply with caution, as per Gaurav Garg of Lemonn Markets Desk.
Mehta Equities believe that the company may command a premium valuation compared to India’s other internet tech peers, driven by its stronger unit economics, premium service mix and deeper supply-side integration. “These factors, coupled with its early leadership in a large and underpenetrated services market, position it for a scalable and profitable growth trajectory,” it said.
Reliance Securities recommended subscribe, emphasising that the company is well-positioned to capture long-term growth in urban lifestyle services, given the rising consumer base, professional upskilling ecosystem, and expanding product portfolio.
Meanwhile, Hariprasad K, Founder – Livelong Wealth, cautioned that high valuations leave little margin for error. Competition from offline players and quick-commerce platforms, quality control issues, and gig-worker regulatory changes could pose challenges.