Highlights: Urban Company IPO GMP, Subscription, Urban Company IPO subscribed 108.97x on the final day

Urban Company IPO starts on September 10, 2025, and closes on September 12, 2025.

The promoters of the Urban company are Abhiraj Singh Bhal, Raghav Chandra and Varun Khaitan.

As of September 10, 2025, 2:59 PM, the Grey Market Premium (GMP) for Urban Co.’s IPO stands at Rs. 38.5.

With a price band cap of Rs. 103.00, the estimated listing price is projected to be around Rs. 141.5.

The retail buyers showed big enthusiasm in the IPO of Urban Company. The retail portion was booked 6.74 times so far, while the employee section was booked 6.10 times. The non-institutional investors subscribed to their portion 3.76 times. The qualitative institutional buyers booked the issue 1.19 times. The issue was booked a total of 2.91 times.

Urban Company primarily offers a wide array of home services, including cleaning, pest control, electrician, plumbing and carpentry support, appliance servicing and repair, on-demand home-help assistance and painting, while it offers beauty services such as skincare, hair grooming and massage therapy. All Home and beauty services are delivered by trained and third-party independent service professionals as per the consumers’ convenience and place.

The IPO of Urban Company has been subscribed to 2.34 times by the investors. The retail buyers subscribed to the issue 5.91 times. The NIIs booked it 2.86 times. The employee section was subscribed to 5.54 times so far.

The painting and wall décor service offerings include a variety of painting services such as full and partial home painting, waterproofing, textured walls, and wall panel services. Once the service is booked, the consumer can avail a professional consultation before delivery of the services on the platform. Each consumer is entitled to a one-year warranty on all painting and wall panel services and a ‘pay after satisfaction’ guarantee.

Urban Company completed its anchor investor round on September 9. It raised Rs 854 crore ahead of its IPO. In addition, the company allocated over 8.29 crore equity shares with a face value of Re 1 each at an allocation price of Rs 103 per share. The anchor allocation included 29 schemes from 13 mutual funds. Some of the investors in the anchor round included Nomura, Aditya Birla Sun Life, Florida Retirement System, UTI, Government Pension Fund Global, ICICI Prudential Life Insurance, SBI Life Insurance, Bajaj Allianz, Helios Mutual Fund, CitiGroup Global, and Goldman Sachs.

Consumer retention for Urban Company has remained strong, with 84% of revenue from repeat users. Urban Company differentiates itself through transparent pricing, offering warranties, professional training, welfare initiatives, and providing opportunity of higher earnings to its service partners.

At the upper price band, Urban Company is valuing at a P/E of 65.7x to its FY25 earnings with P/S of 12.9 and 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 Rath Research in an IPO note.

The share price of Urban Company in the grey market premium (GMP) is climbing to Rs 38, showing an upward move. This takes the estimated listing price to around Rs 141, implying a potential gain of nearly 36.9%.

However, it is important to note that GMP is not the official listing price and may fluctuate based on market sentiment.

Read more: Urban Company IPO: Why is the GMP soaring ahead of its opening? 5 ‘must-know’ details

Urban Company was among the first in India to introduce professional beauty services at home, eliminating the rental and capital costs associated with physical salons, enhancing earning potential for service professionals and offering greater value to consumers.

Urban Company’s financials show a sharp turnaround in the past three years. The company’s revenue climbed steadily from Rs 636.6 crore in FY23 to Rs 828 crore in FY24, and further to Rs 1,144.5 crore in FY25. Profitability has also improved, profit before tax came in at Rs 205.6 crore in FY25, with adjusted EBITDA turning positive after earlier losses.

Read more: Urban Company IPO GMP surges: 3 big questions investors must ask before subscribing

Urban Company’s Rs 1,900 crore IPO saw strong investor demand right from the opening bell. Within just two hours of bidding on Day 1, the issue crossed full subscription, with NSE data showing 10.81 crore bids placed against 10.67 crore shares on offer by 12 p.m. Retail investors led the charge, subscribing 3.02 times, while non-institutional investors booked 1.29 times their quota.

The QIB segment, however, saw a relatively modest start with around 20% subscription.

Consumers face the twin challenges of poor access to quality supply and inconsistent service quality while service professionals suffer from a lack of predictability of demand for their services and often rely on intermediaries, thereby resulting in sub- optimal earnings. Urban Company seek to address the challenges faced by consumers by providing them access to standardized, and reliable service experiences at a quality driven benchmark. For further details in relation to the manner in which they address the challenges faced by consumers and service professionals

The Urban Company IPO so far on Day 1 received an overall subscription at 0.79 times. The retail investors showed strong interest, bidding 2.29 times their quota, while the NII category was subscribed 0.94 times. However, the QIB portion lagged behind at just 0.21 times so far.

“Urban Company is tapping into a massive, underpenetrated $60 billion home services market with strong technology, brand and first-mover advantages. The company has shown encouraging signs of turnaround, but the FY25 profit was largely aided by tax credits and core profitability remains thin. At a P/E of over 60x, the issue looks aggressively priced, especially with most of the proceeds going to existing shareholders through the OFS,” said Gaurav Garg, Research Analyst with Lemonn.

The Indian home services market is a rapidly expanding, offering both traditional and modern solutions, from household chores to specialised professional services. Driven by urbanisation and changing lifestyles, demand has accelerated, positioning the industry as a key growth driver in the economy.

Urban Company’s revenue has grown at a healthy pace of 34.1% CAGR over FY23-25. Moreover, during the same period its EBITDA margin has improved from -57.2% in FY23 to -2.8% in FY25, led by its strict cost control initiatives.

Urban Company has served 14.6 million customers to date. Moreover, it has witnessed a healthy growth of 25.5% CAGR in its overall NTV over FY23-25, driven by an increase of 17.3% CAGR growth in annual transacting users and a growth of 4.6% CAGR in average spend per transacting user.

The service professionals offer comprehensive cleaning services for areas such as bathrooms, kitchens, sofas, carpets and the full home on their platform. Additionally, the service offerings include a range of pest control services tailored for residential properties. The usage of full home cleaning services typically increases during festival periods. The cleaning and pest control services category is among the fastest-growing categories on their platform in the three months ended June 30, 2025 and Fiscal 2025. The pest control services are delivered by their subsidiary, Handy Home Solutions, through independent contractors.

“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 capitalise on the growth driven by expanding consumer segments and shifting preferences towards higher spending on experiences. We assign a ‘Subscribe’ rating to its initial issue,” said Deven Choksey Research in an IPO note.

The Urban Company IPO is a Rs 1,900 crore book-built issue. It is a combination of offer for sale of 13.86 crore shares that aggregates to Rs 1,428 crores and a fresh issue of 4.58 crore shares totalling Rs 472 crores.

The subscription window for Urban Company is between Sep 10-12 and the allotment for the issue is likely to be finalised on September 15. The expected listing date is around September 17.

The Urban Company IPO is seeing significant buzz in the grey market. As per the latest data, the grey market premium (GMP) stands at Rs 35 per share. With the IPO’s upper price band set at Rs 103, this implies a potential listing price of around Rs 138, indicating a premium of 35%.