Urban Company IPO allotment finalised; here's what to expect from listing

Unlisted shares of the Urban Company have been commanding a decent premium in the grey market ahead of their debut on the bourses, indicating a potentially favorable listing

Urban Company IPO listing forecast: D-Street investors are now eagerly awaiting the listing of tech-driven home services marketplace player, Urban Company, following the finalisation of IPO allotment. Meanwhile, unlisted shares of the company have been commanding a decent premium in the grey market ahead of their debut on the bourses, indicating a potentially favorable listing.

 

Sources tracking unofficial market activities revealed that Urban Company’s shares were changing hands at around ₹157.5 each. This implies a grey market premium (GMP) of ₹54.5 or approximately 52.91 per cent over the IPO issue price of ₹103.

 

The company’s shares are slated to list on the BSE and NSE tomorrow, Wednesday, September 17. If the current grey market trends continue, Urban Company shares may debut at a premium of over 52 per cent. However, it is important to remember that the GMP is an unregulated market indicator and should not be relied upon as a definitive measure of the company’s actual market performance.

 

Prashanth Tapse, senior vice president (research) at Mehta Equities, anticipates a strong listing gain in the range of 40 to 50 percent or possibly higher, depending on market trends on the day of listing. He attributed this expectation to the high subscription levels and the prevailing positive market sentiment.

 

Despite being viewed as expensive from a valuation perspective and entering the market during a relatively muted phase, the Urban Company IPO witnessed strong investor demand. The issue ended up being oversubscribed by 103.63 times. This was led predominantly by qualified institutional buyers (QIBs), whose segment was subscribed 147.20 times. Non-institutional investors (NIIs) followed with 74.04 times subscription, while retail investor participation also remained strong at 39.25 times.

 

According to Tapse, the robust response to the IPO is a reflection of investors’ confidence in Urban Company’s long-term potential. He noted that the company is currently the only organized player in the tech-driven online home services marketplace, holding a leadership position across 51 cities in India as well as international markets like the UAE and Singapore. With strong brand recall and first-mover advantage, Urban Company is well-positioned as the preferred service provider in what remains a largely fragmented sector.

 

Tapse further believes that beyond the initial listing gains, Urban Company presents a compelling structural growth story. He considers the company a potential proxy for the rising demand in the home services segment across its key geographies. Based on this outlook, he recommended that investors who received allotments should hold the stock from a long-term investment perspective, while remaining mindful of inherent market risks. For those who were not allotted shares, he advised a ‘wait and watch’ approach to identify any post-listing dip as a potential entry opportunity.

Urban Company IPO details

The Urban Company IPO consisted of a fresh issue of 45.8 million equity shares worth ₹472 crore and an offer for sale (OFS) of up to 138.6 million shares, aggregating to ₹1,428 crore. The public offering was open for subscription from September 10 to September 12, 2025, at a price band of ₹98 to ₹103 per equity share, with a lot size of 145 shares. The company has fixed the issue price at ₹103 per share.

 

While Urban Company will not receive any proceeds from the OFS, as those funds will go to the selling investors, it will use the capital raised from the fresh issue for various strategic purposes. These include investment in new technology development, enhancements to cloud infrastructure, lease payments for office spaces, marketing campaigns, and general corporate requirements. 

About Urban Company

Urban Company is a technology-driven, comprehensive online services marketplace that delivers quality solutions across a wide range of home and beauty service categories. As of June 30, 2025, the company operates in 51 cities across India, the United Arab Emirates (UAE), and Singapore. This figure does not include cities served through its joint venture in the Kingdom of Saudi Arabia (KSA), with 47 of those cities located within India.