Urban Company shares fall 4% as first lock-in for anchor investors ends

Urban Company shares fell nearly 4 per cent after the first lock-in period for its anchor investors ended

Shares of Urban Company Ltd. fell nearly 4 per cent on Thursday after the first lock-in period for its anchor investors ended, freeing up shares worth nearly ₹680 crore. 

 

The recently listed stock fell as much as 3.97 per cent during the day to ₹157. 68 per share, a day after soaring 9 per cent. The stock pared losses to trade 3.7 per cent lower at ₹157.9 apiece, compared to a 0.53 per cent advance in Nifty 50 as of 10:27 AM. 

 

Shares of the company are nearly down 3 per cent since its listing on September 17, compared to a 0.7 per cent gain in the benchmark Nifty50 index. Urban Company has a total market capitalisation of ₹22,550.84 crore. 

 

Urban Company 50% anchor lock-in ends

The company's shares fell after anchor investors who bid before the initial public offering (IPO) were allowed to offload 50 per cent of their holdings. 

 

The app-based beauty and home services platform raised ₹854 crore from anchor investors. The company has allocated 8.29 crore equity shares at ₹103 per apiece to anchor investors comprising 59 funds. This takes the fundraising to ₹854 crore.

 

Given that only 50 per cent of the holdings will be allowed to be traded, about 4.15 crore shares will be available for trading. With Wednesday's closing price of ₹164.60 per share, the total value of shares available for trading from anchor investors will be ₹683.09 crore. 

 

The second lock-in period for anchor investors will end on December 14, 2025.

 

Domestic and foreign institutions participated in the anchor round, 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 and Amundi Funds New Silk Road. 

Urban Company reports FY25 results

Home services provider reported its first consolidated net profit for the fiscal year 2025 at Rs 239.76 crore, according to a PTI report. Urban Company posted a net loss of ₹92.77 crore in FY24.

 

The consolidated income from operations increased by about 38 per cent to ₹1,144.46 crore in the financial year 2025 from ₹826.97 crore in FY24. On a standalone basis, Urban Company posted a net profit of ₹290 crore in FY25 while it registered a loss of ₹11.19 crore in FY24.

 

The stock was listed at ₹161 — a 56 per cent premium to its issue price of ₹103 — and closed at ₹167, giving the company a market capitalisation of ₹23,987 crore. The ₹1,900 crore issue was fully subscribed within hours of opening and eventually received bids 104 times the size of the offer, making it the most subscribed large IPO of the year.