Urban Company IPO subscribed 3x on day one, retail demand strong

Urban Company's Rs 1,900-crore IPO drew strong response on debut, with retail bids oversubscribed seven times and valuation pegged at Rs 14,800 crore at the top end

The ₹1,900 crore initial public offering (IPO) of tech startup Urban Company got lapped up within hours of launch.

 

On the first day, the share sale — through which the company is raising ₹472 crore in fresh capital — was subscribed more than 3x, with the retail portion already seeing over seven times more demand than shares on offer.  

 

Tiger Global-backed Urban Company is a marketplace that connects customers with professionals that offer services such as beauty, grooming, cleaning, plumbing, carpentry, and appliance repair.

 

The shares are priced in the range of ₹98-103 in the public offer. At the top-end, the company is valued at ₹14,800 crore.

 

Founded in 2014, Urban operates across 47 Indian cities, and has also expanded to the United Arab Emirates and Singapore. In FY25, the company had clocked net profit of ₹248 crore on revenues of ₹1,145 crore.

 

“Urban Company’s initial issue is priced at 12.4 times trailing 12-month enterprise value-to-sales, which appears higher compared to its listed peers in the food service category. Moreover, we have compared the company's financial performance with other service companies (not directly comparable) and believe its issue to be fairly priced. We believe the company is well-positioned to capitalise on the growth driven by expanding consumer segments and shifting preferences towards higher spends on experiences,” said a note by Deven Chokey Research, which has a ‘subscribe’ rating on the IPO. 

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