Home services marketplace Urban Company’s initial public offering (IPO), set to open for bidding on Wednesday, September 10, is commanding a decent grey market premium (GMP). According to market sources, the shares are trading at a GMP of ₹28 per share, indicating strong investor sentiment.
If the momentum holds steady throughout the bidding period, the stock may debut on Indian exchanges with healthy gains. Based on the upper price band of ₹103, the ₹28 GMP suggests a potential listing price of around ₹136, a 27.18% premium over the IPO price. The grey market premium reflects investors’ willingness to pay above the issue price.
Urban Company IPO details
The company aims to raise ₹1,900 crore from the issue, with the . The issue is a combination of a fresh issue of 4.58 crore shares aggregating to ₹472 crore and an offer for sale of 13.86 crore shares aggregating to ₹1,428 crore.
For retail investors, the lot size has been set at 145 shares, requiring a minimum investment of ₹14,935 per lot. For small non-institutional investors (sNII), the minimum is 14 lots (2,030 shares) amounting to ₹2 lakh, while for big non-institutional investors (bNII), it is 67 lots (9,715 shares) amounting to ₹10 lakh.
The company proposed to use the funds from the issue towards expenditure for new technology development and cloud infrastructure, expenditure for lease payments for offices, expenditure towards marketing activities, and general corporate purposes.
About Urban Company
Urban Company marketplace providing quality services and solutions across various home and beauty categories. It operates in 59 cities across India, the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia, of which 48 cities are in India, as of December 31, 2024.
Its platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.
The company in FY25, reversing a loss of ₹92.7 crore in FY24, while the net loss stood at ₹312 crore in FY23 and ₹514 crore in FY22.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.