From booking a salon service at home to fixing a leaky tap, Urban Company is your one-stop shop for all kind of home solutions. Slowly but steadily, they have made a place in millions of households across India as a go-to platform for everyday needs. Now, the tech-enabled services company is preparing for its stock market debut.
The wait is finally over for investors interested in the upcoming Urban Company IPO. This Rs 1,900 crore issue is just days away from its launch. Let’s take a look at the key factors to watch out for this upcoming IPO –
Urban Company IPO: When does the IPO open?
The Urban Company IPO will open for subscription on Wednesday, September 10, and will close on Friday, September 12.
Furthermore, for institutional players, the anchor book opens a day earlier on September 9.
Urban Company IPO: Price band and size of the issue
Shares of the Urban Company IPO will be offered in a price range of Rs 98 – 103 a piece. At the upper end, the issue is expected to raise Rs 1,900 crore.
This includes a fresh issue of Rs 472 crore and an offer-for-sale worth Rs 1,428 crore, where existing investors will partially offload their stakes.
Urban Company IPO: Who gets how much?
Like most mainboard IPOs, the allocation follows the standard split.
This includes a 75% for qualified institutional buyers (QIBs) and a 15% for non-institutional investors (NIIs). Furthermore, 10% is reserved for retail investors.
Furthermore, employees of the company will also get a reserved portion worth up to Rs 2.5 crore.
Urban Company IPO: Grey market buzz ahead of IPO opens
Early signs in the grey market show a modest premium.
As per market trackers, Urban Company IPO’s GMP stood at around Rs 10 per share, suggesting a possible listing upside of about 10%.
However, this is not the actual or official listing. It is important to note that GMP fluctuates based on market conditions.
Urban Company IPO: Issue objective
The company aims to use the Rs 472 crore raised via fresh issuance for building new tech and boosting infrastructure. As per the DRHP, the company plans to channel Rs 190 crore into building new technologies and cloud infrastructure. Rs 75 crore will be used towards office leases, and Rs 90 crore for marketing efforts. The balance will be used to meet general IPO expenses.
Urban Company IPO: Who’s selling stake and how much?
The founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra own about 21% together. But they are not selling their stake Instead big investors like Accel (Rs 433 crore), Elevation Capital (Rs 346 crore), Tiger Global (Rs 303 crore), and Vy Capital (Rs 216 crore) are trimming their stake in the company.
Urban Company IPO: Financials performance
Urban Company has managed a turnaround in recent years. In the first nine months of FY25, it reported Rs 846 crore in operating revenue and Rs 242 crore in net profit. That is a swing from a loss of Rs 58 crore during the same period in FY24.
With operations spread across 51 cities in India, the UAE, and Singapore, the platform’s scale and improving numbers have set the stage for its market debut.