Urban Company made a remarkable entry into the Indian stock market with its shares surging on their debut, following an intensely subscribed IPO that captured significant investor interest within hours of opening. The company’s ₹1,900-crore issue was oversubscribed by more than 100 times, reflecting the robust confidence investors have in tech-driven service platforms in India.
Market Debut and Investor Frenzy
Urban Company’s IPO, priced between ₹98 and ₹103 per share, saw such strong demand that it was fully subscribed within just two hours of launch. Retail investors played a major role in this rush, with the grey market premium (GMP) climbing sharply—reaching ₹56, implying potential gains of nearly 54% over the issue price on listing day. Anchor investors, including major global funds, had already committed ₹854 crore, further validating the company’s market leadership.
Growth Performance and Business Model
Founded in 2014, Urban Company disrupted India’s fragmented home services space, offering a formalized ecosystem for both consumers and service providers. In FY25, the company reported revenues of ₹1,145 crore, up 38% year-on-year, and achieved its first annual profit of ₹240 crore, with a large portion aided by deferred tax credits. Repeat customers contributed to 84% of its sales, highlighting strong brand retention. Subscriptions from employees and non-institutional investors further solidified trust in the platform.
IPO Breakdown and Listing Outlook
The IPO consisted of a fresh issue worth ₹472 crore and an offer-for-sale of ₹1,428 crore, providing lucrative exits to early investors like Accel and Elevation Capital. With the listing scheduled on September 17, expectations ran high for continued momentum, despite analyst concerns on high valuations and sustainability of profits. Urban Company is now valued near ₹15,000 crore, placing it at a premium compared to peers, but the rapid growth potential in India’s $60 billion home services sector remains a key attraction.
What’s Next for Urban Company?
Industry experts recommend Urban Company’s IPO as a long-term bet on India’s booming home services economy, even though short-term returns might be limited due to rich valuations. The company’s ability to maintain profitability, scale operations, and fend off competitors will determine its success as a newly listed entity. The IPO marks a new milestone for Urban Company, promising exciting developments ahead in the sector
