Urban Company IPO opens with 35% GMP: Analysts eye long-term growth; apply?

Urban Company IPO: Check price band, lot size, grey market premium (GMP), reviews, allotment date, listing date, and other key details here

Urban Company IPO opens for subscription: The Initial Public Offering (IPO) of  technology-driven online marketplace and home services provider Urban Company opens for public subscription today, Wednesday, September 10, 2025. The company aims to raise ₹1,900 crore from the public offering, which comprises a fresh issue as well as an offer for sale (OFS) of equity shares.

 

Urban Company raised ₹854 crore from anchor investors in a bidding round that concluded on Tuesday, September 9. The anchor portion saw participation from both domestic and foreign institutional investors, including Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, Florida Retirement System, Allspring Global Investments LLC (EMSC), Theleme India Master Fund Ltd, Amundi Funds New Silk Road, Nippon India Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, SBI MF, SBI Life Insurance Company, and ICICI Prudential Life Insurance Company.

 

 

Meanwhile, the market analysts remain broadly optimistic about Urban Company and have shared favorable reviews of its public offering. However, before diving into their views, let's have a look at the key details of the Urban Company IPO:

Urban Company IPO details

The public offering comprises a fresh issue of 45.8 million equity shares worth ₹472 crore and an offer for sale (OFS), where investors are divesting up to 138.6 million shares aggregating up to ₹1,428 crore.

 

The Urban Company IPO is being offered at a price band of ₹98–103 per share, with a lot size of 145 shares. Investors can bid for a minimum of 145 shares and in multiples thereof.

 

A retail investor would need a minimum of ₹14,935 to bid for one lot (145 shares) of the Urban Company IPO, while an investment of ₹1,94,155 would be required to bid for the maximum limit of 13 lots (1,885 shares).

 

For the public issue, MUFG Intime India is serving as the registrar, while Morgan Stanley India Company, Goldman Sachs (India) Securities, JM Financial, and Kotak Mahindra Capital Company are the book-running lead managers.

Urban Company IPO grey market premium (GMP) today

Ahead of the launch of the public issue, unlisted shares of Urban Company were commanding a decent premium in the grey market on Wednesday. Sources tracking grey market activity revealed that the company’s unlisted shares were exchanging hands at around ₹139.5 per share in the unofficial market. This translates to a grey market premium (GMP) of ₹36.5 per share, or 35.44 per cent over the upper end of the issue price.  ALSO READ | Shringar House IPO opens: Strong prospects, say analysts; should you bid?

Urban Company IPO timeline

The subscription window to bid for the Urban Company IPO is likely to close on Friday, September 12, 2025. Following that, the basis of allotment is tentatively scheduled to be finalised on Monday, September 15, 2025. Successful allottees will receive the company’s shares in their demat accounts on Tuesday, September 16, 2025.

 

Shares of Urban Company are tentatively slated to list on the BSE and NSE on Wednesday, September 17, 2025.

Urban Company IPO objective

According to its Red Herring Prospectus (RHP), Urban Company will not receive the proceeds from the OFS, as those will go to investors divesting their stakes through the public issue.

 

However, the company proposes to utilise the proceeds from the fresh issue for expenditure on new technology development and cloud infrastructure, and lease payments for office spaces. Urban Company will also deploy the funds raised from the fresh issue towards marketing activities and general corporate purposes.

Should you subscribe to Urban Company IPO?

Deven Choksey Research – Subscribe

Analysts at Deven Choksey Research have assigned a ‘Subscribe’ rating to the Urban Company IPO. Urban Company’s initial issue is priced at 12.4x TTM EV/Sales, which, analysts said, appears higher compared to its listed peers in the food services category. However, they also noted that the issue appears fairly priced when compared to similar service companies (though not directly comparable).

 

“We believe the company is well-positioned to capitalise on growth driven by expanding consumer segments and shifting preferences towards higher spending on experiences. We assign a ‘SUBSCRIBE’ rating to its initial issue,” wrote the analysts in a research note.

Anand Rathi Research Team – Subscribe for long term

The Anand Rathi Research Team has recommended that investors subscribe to the IPO from a long-term perspective. Analysts pointed out that the company benefits from strong network effects, as consumers and service professionals mutually reinforce platform growth. Urban Company also improves service quality through in-house training, advanced tools, and defined service standards, while its technology platform ensures smooth fulfilment, customer acquisition, and professional empowerment.

 

“A trusted and established brand further reinforces its market position and long-term consumer loyalty. Along with scale and technological capabilities, these factors have helped enhance profitability. At the upper price band, the company is valued at a P/E of 65.7x on FY25 earnings, with a P/S of 12.9 and a market cap of ₹1,47,895 million post issue,” wrote the analysts.

 

“We believe that the IPO is fully priced and recommend a ‘Subscribe – Long Term’ rating.”  ALSO READ | Dev Accelerator IPO opens today: Analysts suggest long-term buy; here's why

Canara Bank Securities – Subscribe for long term

Analysts at Canara Bank Securities have also recommended that investors subscribe to the issue for the long term, citing service verticals like InstaHelp and ecosystem-integrated products that are driving customer stickiness and margin expansion. They also noted the company’s potential to shape and lead the formalisation of home services in India and beyond.

 

The analysts pointed out that Urban Company has demonstrated a compelling transformation from a cash-intensive startup to a profitable, cash-flow-positive enterprise, underpinned by strong unit economics and operational scalability.

 

“Its business model is reinforced by high consumer repeat rates, a robust network of trained professionals, and powerful micro-market network effects. The company’s growth strategy is anchored in its India Consumer Services segment, with prudent international expansion and product diversification enhancing long-term potential,” the analysts stated.

 

They further emphasised that management’s approach reflects a disciplined balance between aggressive growth and sustainable execution, supported by sound governance practices.

 

“While the company’s P/E ratio stands at 515x (annualised Q1 FY2026) and 62.05x for FY2025—relatively elevated compared to peers with differing business models—it reflects investor confidence in Urban Company’s ability to scale profitably in a largely unorganised $50 billion addressable market,” wrote the analysts in their research report.

About Urban Company 

Urban Company is a technology-driven, full-stack online marketplace offering home and beauty services like cleaning, pest control, skincare, appliance repair, painting, and on-demand help. Services are delivered by trained professionals, supported with tools and consumables, while its ‘Native’ brand offers water purifiers and electronic door locks via contract manufacturing. As of June 30, 2025, the company operates in 51 cities across India (47), UAE, and Singapore, excluding its Saudi Arabia joint venture.