Urban Company shares list at 57% premium; should you book profit or hold?

Urban Company share price: Urban Company shares listed at ₹161 per share on the BSE and ₹162.25 per share on the NSE, against the IPO issue price of ₹103 per share

Urban Company share price: Shares of tech-driven home services marketplace player, Urban Company, made a solid debut on the bourses following the completion of its initial public offering (IPO).  The company's shares listed at ₹161 per share on the BSE, reflecting a premium of ₹58 or 56.31 per cent over the issue price of ₹103 per share.

 

On the National Stock Exchange (NSE), Urban Company shares listed at a premium of ₹59.25 or 57.52 per cent at ₹162.25 per share.  

 

Urban Company IPO listing was largely in line with expectations from the grey market. Prior to the company’s listing on Dalal Street, the company’s shares were trading in the grey market at around ₹157.5 per share, indicating a grey market premium (GMP) of ₹54.5, or approximately 52.91 per cent over the IPO issue price, according to sources tracking unofficial market activities. 

Should you book profit or hold?

Beyond the initial listing gains, Urban Company, Prashanth Tapse, senior vice president (research) at Mehta Equities, said, presents a compelling structural growth story. Tapse considers the company a potential proxy for the rising demand in the home services segment across its key geographies.

 

 

"Urban 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," said Tapse.

 

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.  Shivani Nyati, head of wealth at Swastika Investmart, on the other hand, recommended that investors who were allotted the Urban Company shares may consider booking a partial profit post-listing. Nyati pointed out that it is a leading tech-enabled home services platform offering a wide range of services, including beauty and wellness, appliance repair, cleaning, and maintenance. In FY25, Urban Company reported revenue of ₹1,144 crore (38 per cent Y-o-Y growth) and ₹240 crore profit (a significant turnaround from a ₹93 crore loss in FY24).

 

She, however, recommended investors to hold the remaining Urban Company shares post partial profit booking, while keeping the Stop Loss at ₹120 per share.

 

Urban Company IPO details

The public offering comprised a fresh issue of 45.8 million equity shares, aggregating up to ₹472 crore, along with an offer for sale (OFS) of up to 138.6 million shares, worth ₹1,428 crore. The public issue was priced in a range of ₹98 to ₹103 per equity share, with a lot size of 145 shares. The IPO was open for subscription from September 10 to September 12, 2025.

 

The offering saw overwhelming demand from investors and was oversubscribed by 103.63 times. This response was driven primarily by qualified institutional buyers (QIBs), who subscribed to the issue 147.20 times. Non-institutional investors (NIIs) subscribed 74.04 times, while retail investor participation also remained strong with 39.25 times subscription.   

Urban Company fixed the issue price at ₹103 per share. As outlined in its Red Herring Prospectus (RHP), the company will not receive any proceeds from the OFS, as those funds will go to the selling shareholders. However, the proceeds from the fresh issue will be utilised for various strategic initiatives. These include investment in technology development, enhancement of cloud infrastructure, lease payments for office spaces, marketing campaigns, and general corporate purposes.

 

The public offering was well-received by market analysts and brokerage firms. Analysts at Deven Choksey Research recommended subscribing to the public issue. Similarly, Anand Rathi Research and Canara Bank Securities also gave a positive outlook, recommending that investors subscribe from a long-term investment perspective. 

About Urban Company

Urban Company is a technology-driven online services marketplace, focused on providing high-quality services across various home and beauty categories. As of June 30, 2025, the company operated 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). Out of the 51 cities, 47 are located in India.