The ₹1,900-crore of app-based beauty and home services platform Urban Company Ltd was fully subscribed on Day 1, within hours of opening for bidding on Wednesday, thanks mainly to retail investors.
The IPO that will remain open till September 12, has come out with a price band of ₹98-103 a share. Investors can bid in multiples of 145 shares.
The issue received bids for about 33.38 crore shares, against 10.67 crore shares on offer, receiving bids for 3.13 times.
IPO details
The IPO from the Gurugram-based company consists of a fresh issue worth ₹472 crore and an offer-for-sale from existing investors worth ₹1,428 crore. Those selling shares under the offer-for-sale (OFS) route are Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd and VYC11 Ltd.
Subscription details
The company has reserved up to 10 per cent for retail investors, 75 per cent for QIBs and the balance 15 per cent for non-institutional investors or HNIs.
The quota reserved for retail Investors was subscribed 7 times, and the non-institutional investors portion received 4.16 times subscription. The window for qualified institutional buyers was subscribed 1.31 times. The company reserved about 2.8 lakh shares for employees; that quota was subscribed over 5.79 times.
Objective of issue
The company plans to use the funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.
Anchor investors
As part of the IPO, Urban Company raised ₹854 crore from anchor investors. Global institutions such as Citigroup Global, Goldman Sachs, Government of Singapore, Ashoka Whiteoak, Government Pension Fund Global, Nomura, Amundi Funds, Florida Retirement System, Steadview Capital, and Steinberg India received shares in the anchor book.
Besides, domestic fund houses such as SBI Mutual Fund, ICICI Prudential MF, HDFC AMC, Fidelity, Nippon Life, Aditya Birla Sun Life AMC, UTI AMC, SBI Life, ICICI Prudential Insurance Company, Bajaj Allianz Life, Sundaram MF, Abakkus Asset Manager, Mahindra Manulife, Helios, Tata AIG General, Bandhan MF, Edelweiss, and PGIM India were also anchor investors.
About Urban Company
Urban Company operates a technology-driven, full-stack online marketplace for quality-driven services and solutions across the home and beauty categories. Apart from India, it has a presence in the United Arab Emirates, Singapore, and Saudi Arabia. Its platform enables consumers to order services, including cleaning, pest control, electrical work, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities and JM Financial are the book-running lead managers to the issue.
What brokerages say
AUM Capital: UCL’s ability to offer a wide range of home and beauty services like plumbing, electrical repairs, appliance servicing, painting, cleaning, hair care, and massage therapy makes it the first choice amongst potential and existing consumers. Of the major advantages of operating as a full-stack start-up, foremost is the capacity to grow in volumes as such a business is in control of its supply chain and customer experience, giving it an edge over its competitors.
UCL is stated to be India’s highest searched online home services full-stack platform brand on Google trends between January 2024 and March 2025. We would recommend a Subscribe to the issue.
Anand Rathi: We believe that the IPO is fully priced and recommend a “Subscribe- Long Term” rating to the IPO.
Hariprasad K, Founder – Livelong Wealth: Valuations demand scrutiny. The issue is priced at 12x sales and 61x earnings, placing it alongside global consumer-tech platforms, but at a premium to domestic peers. While the Grey Market Premium (GMP) hints at strong listing-day sentiment, the long-term thesis is more critical for investors.
High valuations leave little margin for error. Intense competition from offline service providers and quick-commerce platforms poses a threat. Execution challenges around quality, retention, and dispute resolution remain. Regulatory changes on gig-worker rights could also elevate compliance costs.
Gaurav Garg, Lemonn Markets Desk: For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon, who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations.”
Urban Company offers a unique play on India’s rapidly formalising services economy, backed by strong network effects, hyperlocal execution, and technology-driven scalability. With a rising consumer base, professional upskilling ecosystem, and expanding product portfolio, the company is well-positioned to capture long-term growth in urban lifestyle services. At the given price band, the IPO provides investors exposure to a category leader with high brand recall, recurring demand visibility, and multiple monetisation levers — making it a compelling subscription opportunity for long-term investors. Owing to such developments, we recommend to subscribe.