Highlights: Urban Company IPO GMP cools off ahead of listing ?

Urban Company has outlined how it will use the IPO proceeds – around Rs 190 crore will be invested in new technologies and cloud infrastructure, Rs 75 crore set aside for office leases, and about Rs 90 crore allocated for marketing to boost its brand. The remaining funds will go towards general corporate needs.

As per the latest trend, Urban Company shares are now trading at a premium of Rs 58 in the grey market. This suggests a potential listing price of around Rs 161 — some 56% higher than the IPO’s upper price band of Rs 103. But the number has fallen steadily — having started the day trading at around Rs 171.5 per share.

A host of domestic and foreign institutions participated in the anchor round, including Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, Florida Retirement System, Allspring Global Investments LLC (EMSC), Theleme India Master Fund Ltd and Amundi Funds New Silk Road, according to a circular uploaded on BSE’s website.

Also, Nippon India Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, SBI MF, SBI Life Insurance Company and ICICI Prudential Life Insurance Company invested in the anchor round.

Urban Company has laid out a clear plan for the money raised from its IPO. About Rs 190 crore will go into building new technologies and cloud infrastructure, while Rs 75 crore is earmarked for office leases.

The company also plans to spend Rs 90 crore on marketing initiatives to strengthen its brand presence. The balance amount will be directed towards general corporate purposes.

The Urban Company IPO was fully subscribed within two hours of launch on Wednesday, as retail investors thronged to grab a piece of India’s burgeoning online home services market. It eventually ended with the issue getting a huge 103.63x subscription on the last day of bidding on Friday.

Here is how you can check the allotment status on BSE:

– Go to the BSE IPO allotment status page.

– Select Equity as the issue type.

– Choose Urban Company IPO from the dropdown.

– Enter your Application Number or PAN.

– Complete the captcha and click Search to view your allotment.

As per the latest trend, Urban Company shares are trading at a premium of Rs 61 in the grey market. This suggests a potential listing price of around Rs 164 — nearly 60% higher than the IPO’s upper price band of Rs 103.

Here are the steps:

– Visit the MUFG Intime official website

– Select Urban Company IPO from the company dropdown.

– Enter any of the following: PAN, Application Number, DP ID/Client ID, or Bank Account Number.

– Click Search to view your allotment.

The company’s Initial Public Offering (IPO) has a price band of Rs 98-103 per share. At the upper end of the price band, the company’s valuation is pegged at Rs 14,790 crore.

The company plans to use funds raised through the fresh issuance for new technology development and cloud infrastructure, lease payments for its offices, marketing activities, and general corporate purposes.

The category for Qualified Institutional Buyers (QIBs) got subscribed 140.20 times. The portion for non-institutional investors fetched 74.04 times subscription, while the Retail Individual Investors (RIIs) part received 39.25 times subscription. Urban Company on Tuesday raised Rs 854 crore from anchor investors.

The initial public offer of app-based beauty and home services platform Urban Company Ltd received overwhelming investor participation, with the issue getting a huge 103.63 times subscription on the last day of bidding on Friday. The Rs 1,900-crore IPO received bids for 11,06,46,08,960 shares against 10,67,73,244 shares on offer.

Share allotment is expected to be finalised today. Successful bidders will see shares credited to their Demat accounts after the announcement is made on September 15. The company’s stock is slated to list on the BSE and NSE on September 17, marking its official market debut.

The GMP of the Urban Company IPO is still above the key 60% mark. However, it is off the morning highs. Earlier today the GMP surged as high as 66%. It is currently trending around the 60% mark, Though the GMP did cool from morning levels, it is still aboive the key 60% mark.

Here is how you can check the allotment status on NSE:

– Log onto the NSE website or click on this direct link

– Select ‘Urban Company’ under Equity & SME IPO bid details

– Enter IPO Application number or PAN details after selecting the company symbol. Press the submit button.

– The allotment status and other details will be shown on the screen

As per the latest trend, Urban Company shares in the grey market are trading at a premium of Rs 62. This suggests a potential listing price of around Rs 165, which is nearly 60% higher than the IPO’s upper price band of Rs 103. Earlier in the morning, the shares were trading about 66% above the issue price.

As investors await the IPO allotment for Urban Company IPO, there are three key factors that one must watch out for –

-Based on the overall GMP indications, there are expectations that the issue may show a listing pop.

-That apart the huge retail participation and subscription numbers highlight the big interest aming retail investors

– Urban Company doesn’t have a big national rival as of now. Most brokerages have indicated that the issue will be fully priced in, in terms of value.

Urban Company has built a presence in men’s grooming with services like haircuts, beard trims, styling, and facials. These are split into Prime and Royal categories, with the premium ‘Royal’ tag linked to a higher average order value. The company has positioned itself as a one-stop destination for professional grooming, bringing salon-quality services to the customer’s doorstep.

At the same time, massage therapies have become one of the platform’s most popular and highly rated offerings. From Ayurvedic to sports and deep tissue massages, trained professionals arrive with portable beds, curated oils, and spa essentials to create a luxury at-home experience. Bundled packages, available at discounted prices, further boost demand, with massage services also categorised under Prime and Royal based on customer preferences and order value.

The GMP trend in the latest Urban Company IPO is quite interesting and sharply in contrast with what has been seen thus far with other recent IPOs. The GMP has surged over 60% ahead of allotment, this is quite in contrast with most other IPOs that saw around 30% surge in GMP. Though the GMP is not an official record, it is merely indicative of a general trend.

The GMP of the Urban Company IPO is surging ahead of the allotment being finalised later today. There is lot of interets in the IPO ahead of its listing and it is clearly borne out by the fact that the Urban Company IPO subscribed 108.98x. The retail category alone was subscribed 41.49x.

The grey market is buzzing ahead of Urban Company’s IPO listing. According to data from investorgain.com, shares are commanding a premium of Rs 64 in the unofficial market. This puts the expected listing price at nearly Rs 167 per share, against the issue price of Rs 103.

Anand Rathi Research said that the company is seeking a valuation at a P/E of 65.7x at the upper price band to its FY25 earnings, which the brokerage finds fully priced. The company has a price to sales of 12.9 and a market cap of Rs 14,789.5 crore post issue of equity shares.

“We believe that the IPO is fully priced and recommend a ‘Subscribe- Long Term’ rating to the IPO,” said Anand Rathi Research in an IPO note.

The share allotment is expected to be finalised today, September 15, after which successful bidders will see shares credited to their Demat accounts.

The company’s stock is slated to list on the BSE and NSE on September 17, marking its official market debut. The issue is being managed by Kotak Mahindra Capital as the lead manager, while MUFG Intime India is the registrar handling the allotment process.

“Urban Company’s initial issue is priced at 12.4x TTM EV/Sales, which appears higher compared to its listed peers in the food service category. Moreover, we have compared the company’s financial performance with other service companies (not directly comparable) and believe its issue to be fairly priced. We believe the company is well-positioned to capitalize on the growth driven by expanding consumer segments and shifting preferences towards higher spends on experiences. We assign a “SUBSCRIBE” rating to its initial issue,” said Deven Choksey research.

Investors can also check their Urban Company IPO allotment directly on the MUFG Intime website. From the company dropdown, select Urban Company IPO, and then provide one of the following details – PAN, Application Number, DP ID/Client ID, or Bank Account Number. After entering the details, click Search to view your allotment status.

Another way to track your Urban Company IPO allotment is through the NSE IPO application tracking page. Select Equity and SME IPO Bid Details, choose Urban Company IPO from the list, and then enter your Application Number and PAN. Once you hit Submit, your allotment status will be displayed on the screen.

If you applied for the Urban Company IPO, you can easily check whether you got shares through the BSE website.

Just head to the IPO allotment page, select Equity as the issue type, and choose Urban Company IPO from the dropdown menu. Then enter your Application Number or PAN, fill in the captcha, and hit Search to see your allotment status.

Also Read: Urban Company IPO allotment status today: Step-by-step guide to check on BSE, NSE, MUFG Intime

Urban Company has laid out a clear plan for the money raised from its IPO. About Rs 190 crore will go into building new technologies and cloud infrastructure, while Rs 75 crore is earmarked for office leases.

The company also plans to spend Rs 90 crore on marketing initiatives to strengthen its brand presence. The balance amount will be directed towards general corporate purposes.

Urban Company has raised Rs 854 crore from anchor investors on September 9, just before opening its IPO. The company allotted a little over 8.29 crore shares at Rs 103 each in this round.

The anchor book saw participation from 29 mutual fund schemes across 13 fund houses, along with several global and domestic institutions. Among the big names were Nomura, Aditya Birla Sun Life, UTI, Government Pension Fund Global, ICICI Prudential Life, SBI Life, Bajaj Allianz, CitiGroup Global, Helios Mutual Fund, Florida Retirement System, and Goldman Sachs.

The Urban Company IPO allotment is likely to be finalised today. The GMP has shot up 66% and the investors are looking forward to a listing day pop. However, we must remind readers that the GMP is an unofficial indicator of the price movement, and the actual listing price could be very different from the GMP.

Nevertheless a higher GMP is generally associated with high interest in the IPO and possible listing day gains.

Urban Company has reported a sharp turnaround in its financials for FY25. In the first nine months, the home services platform posted an operating revenue of Rs 846 crore and a net profit of Rs 242 crore.

This is a big shift from the same period in FY24, when it had recorded a net loss of Rs 58 crore. The company has also widened its footprint, now serving customers in 51 Indian cities along with international markets such as the UAE and Singapore.