Urban Company (India’s biggest home services app for booking plumbers, cleaners, beauty services, etc.) is bringing an IPO (Initial Public Offering). The company aims to raise about ₹1,900 crore. It already launched its initial IPO on Wednesday, September 10, 2025. Additionally, the company also opened its early subscription on Tuesday, September 9, 2025. After this IPO, Urban Company will be listed on the BSE and NSE, so you can also become a shareholder in the company. Well, what is the price? And will this be a good investment? We mean, you should “Apne time ka karo sahi use,” but should you “Urban Company karo choose?”
Key Details of Urban Company IPO
- The launch date was Wednesday, September 10, 2025.
- Already opened for early investors on September 9, 2025.
- Aims to raise ₹1,900 crore.
Further, this ₹1,900 crore is divided into:
- ₹472 crore fresh issue (meaning the money from these new shares will directly go to the company).
- ₹1,428 crore offer-for-sale (OFS) (meaning, the old investors of the company will sell their shares for their personal benefit).
Price & Lot Size
- Each share that you buy will cost you between ₹98 and ₹103.
- Plus, if you want to become an investor, you shall buy a minimum of 145 shares = around ₹14,935 (if at the top price of ₹103).
What Does the Grey Market Premium (GMP) Say?
Well, it is quite common for companies going for an IPO to market their shares in Grey Market Premium unofficially, and that's what Urban Company did.
- On September 9, 2025 (that's when the company marketed their shares on GMP) at 1:33 PM precisely, → Shares were sold at ₹34 more than the IPO price.
- Meaning, if the IPO price is ₹103, in the grey market, people are paying ~₹137. And that's 33% higher (than the IPO price).
- The expected profits (from the listings) are roughly about 4,930 per lot.
Well, it is important to note that GMP is just an indicator and not an official one. The real price may differ.
Where Will Urban Company Use the IPO Funds?
- To build new tech and cloud infrastructure, just as others are doing (to run their app more smoothly, with AI features, and enhance the speed of bookings).
- To pay off the office lease.
- To invest in marketing and bring in more customers.
- To meet the general needs (like the day-to-day functioning of the company).
Urban Company Valuation
Well, the home-services market in India is still naive and could take a while for this segment to pick up pace. These funds could help the company build not just better tech, but also reach more cities. Now, with the top price band, the company is valued at around ₹14,790 crore.
Timeline of Urban Company IPO
- IPO opened on September 10, 2025.
- IPO closes on September 12, 2025.
- Allotment (meaning the ones who get shares): September 15, 2025.
- Refunds/credits will take place on September 16, 2025.
- Official listing on stock exchanges (BSE & NSE): September 17, 2025.
Who Is Managing the IPO for Urban Company?
- Big names like Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs India, and JM Financial will manage the IPO.
- And MUFG Intime India Private Limited will handle the applications (Registrar).
Risks (Things Investors Should Watch Out For)
- The company's losses in the past: Urban Company has a history of negative cash flow and net losses, something you might want to watch out for.
- Future profits not guaranteed: If the costs stay high and revenue doesn’t grow, then these problems will most likely continue.
- Slow Market and Customer Satisfaction: Such a home services market, which is new in India, is going to impact the numbers. In a quite unique market, service quality is key. It helps keep the reputation and, simultaneously, the growth of the company.
- Competition risk: Urban Company may not have a direct competitor, but the local service providers are indirectly in competition, and they are widely opted for.
“Urban Company karo choose” if you’re a risk-taking investor.
Original Article
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