Urban Company's Rs 1,900-Crore IPO Opens on September 10: What You Should Know

Urban Company's Rs 1,900 crore IPO opens September 10-12, with shares expected to list on September 17. The company raised Rs 854 crore from anchor investors, and grey market premiums suggest strong listing gains.

Urban Company, the Gurugram-based home services platform best known for bringing everything from beauty treatments to plumbing to your doorstep, is set to hit the stock markets with a Rs 1,900-crore initial public offering (IPO). The issue will open for subscription on September 10 and close on September 12.

Just a day before the launch, the company raised Rs 854 crore from anchor investors, with big domestic and global funds picking up 8.29 crore shares at Rs 103 each.

What’s on Offer?

The IPO is split into two parts:

Fresh issue worth Rs 472 crore – funds will go into technology upgrades, cloud infrastructure, office leases, marketing, and other corporate needs.

Offer for Sale (OFS) worth Rs 1,428 crore – where early backers like Accel India, Elevation Capital, and Bessemer India are offloading part of their stake.

The price band has been set at Rs 98–Rs 103 per share. At the top end, Urban Company’s valuation stands at about Rs 14,790 crore.

When Will Shares List?

If all goes as planned, allotment of shares will be finalised by September 15, with the listing on NSE and BSE set for September 17.

Buzz in the Grey Market

Investor excitement is already showing up in the unregulated grey market, where Urban Company shares are commanding a premium of around Rs 36.5, suggesting possible listing gains of over 35%.

Why Are Investors Interested?

Analysts at HDFC Securities point to Urban Company’s unique hyperlocal model. The firm has divided each city into thousands of “micro-markets” — typically 3–5 km wide — allowing over 12,000 service zones across India. Its revenues flow from service booking fees, sale of tools and consumables to professionals, and direct product sales.

The Flip Side

Like any growing business, Urban Company faces challenges too. Competition is heating up from traditional service providers, niche startups, and global players. Scaling rapidly without compromising on service quality and managing resources effectively remain big tests ahead.