Urban Company IPO: Grey Market Signals Blockbuster Debut This Week; Shares May List At 66% Premium

The ₹1,900-crore IPO saw record demand across categories.

Urban Company’s initial public offering (IPO) allotment has been finalized today, marking the next big step after its blockbuster issue that drew over 100 times the subscription.

The home and beauty services platform’s IPO closed last Friday with bids worth 103.63 times the shares on offer, making it one of the most subscribed issues of the year.

Qualified Institutional Buyers (QIBs) led the charge with 140.20 times subscription, followed by non-institutional investors at 74.04 times, while retail participation stood at 39.25 times.

Grey Market Price Watch

In the grey market, Urban Company shares are trading at a premium of ₹ 68.50. Based on the issue price of ₹103, the expected listing price is pegged at ₹171.5, indicating potential listing gains of nearly 66.5%.

Allotment can be checked via the registrar MUFG Intime’s portal, as well as on NSE and BSE websites using application details or PAN.

IPO Details

Urban Company’s ₹1,900-crore IPO was fully subscribed within just two hours of launch. The company intends to raise ₹472 crore from the issue of fresh shares, while ₹1,428 crore is allocated to an offer for sale (OFS) by existing shareholders. The shares will be listed on both the BSE and NSE.

The IPO price band has been set at ₹98 - ₹103 per share, with a minimum application of one lot of 145 shares.

Urban Company operates a hyperlocal, multi-category marketplace for home and beauty services across India, the UAE, Saudi Arabia, and Singapore.

Led by CEO Abhiraj Singh Bhal and co-founders Varun Khaitan and Raghav Chandra, Urban Company is backed by marquee investors including Accel, Tiger Global, and Naspers.

Analyst Take

While the company enjoys strong brand equity, its valuation remains stretched at 60x P/E and 12.9x Price-to-Sales (P/S), according to SEBI-registered Financial Sarthis. One-time tax credits aided its FY25 profitability.

However, the analyst believes that Urban Company’s market leadership and growth prospects stand out even though it is highly reliant on gig workers. 

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