Urban Company makes stellar debut as shares jump 62% over issue price

Urban Company shares made a robust stock market debut on Wednesday, ending the session 62 per cent higher than their issue price. 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 ($2.4 billion). 

 

Investor interest in the company was evident from its blockbuster initial public offering (IPO). 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. 

 

 

Institutional investors subscribed 140.2 times, high-net-worth individuals 74.04 times, retail investors 39.25 times, and employees 36.8 times. The IPO comprised a fresh issue of ₹472 crore and an offer-for-sale worth ₹1,428 crore, with shares priced in the ₹98–103 band.  

 

The blockbuster reception is expected to boost confidence among other new-age startups such as PhysicsWallah, BillionBrains Garage Ventures (owner of Groww), Pine Labs, Meesho, and Lenskart, which are waiting in the wings to launch offerings. Established players like Hero Fincorp, Tata Capital, and LG Electronics India are also preparing their IPOs.   

 

Backed by Tiger Global, Urban Company is a services marketplace connecting customers to professionals in categories such as at-home beauty and grooming, cleaning, plumbing, carpentry, and appliance repair. Founded in 2014, it operates in 47 Indian cities as well as in the UAE and Singapore. Growing numbers of urban professionals and easier discretionary spending following cuts in GST and direct taxes are expected to underpin demand for its services.  

 

“Investors have viewed it as a differentiated platform offering new services to consumers, reflected in its subscription numbers and bumper listing,” said Geetanjali Kedia, investment advisor at SP Tulisan.  

 

Still, questions remain over the company’s ability to deliver sustained profitability.  

 

“Financials did not convince us as core operations are yet to be profitable, with valuations already pricing in performance two years ahead. Overseas operations remain deep in losses. FY25 profit was due to a deferred tax credit, while Q1FY26 gains were largely from other income. Optically, Urban Company looks profitable, but operationally it is not yet the case, even at a net transaction value of ₹3,300 crore. Demand for the IPO was more frenzy, particularly among those who missed Eternal’s stock rally,” Kedia cautioned.

 

Meanwhile, smaller IPOs also debuted on Wednesday. Shares of Shringar House of Mangalsutra gained 12 per cent on listing, while Dev Accelerator ended 5.5 per cent higher. Both their issues were subscribed around 60 times.