Urban Company, India's leading tech-enabled home services platform, is set to launch its Initial Public Offering (IPO) on September 10, 2025. The company aims to raise ₹1,900 crore through this offering, which has already garnered significant attention in the grey market.
Urban Company IPO GMP: A Strong Indicator
The Grey Market Premium (GMP) for the Urban Company IPO has surged to ₹30, indicating a potential listing gain of approximately 29% over the upper price band of ₹103 per share. This uptick reflects strong investor interest and confidence in the company's future prospects.
IPO Details at a Glance
- Price Band: ₹98–₹103 per share
- Issue Size: ₹1,900 crore
- Offer Structure: Fresh issue of ₹472 crore and Offer for Sale (OFS) of ₹1,428 crore
- Retail Lot Size: 145 shares, costing approximately ₹14,935 at the upper price band
- Subscription Dates: September 10–12, 2025
- Listing Date: September 17, 2025
About Urban Company
Founded in 2014, Urban Company connects consumers with trained professionals for a variety of home and beauty services. With operations in 59 cities across India and international markets including the UAE, Singapore, and Saudi Arabia, the company has established a strong presence in the home services sector. In FY25, Urban Company reported a consolidated net profit of ₹239.8 crore, reversing previous losses.
Key Considerations for Investors
While the strong GMP indicates positive market sentiment, investors should consider the following:
- Valuation Concerns: The company's valuation may appear high relative to its earnings, which could impact long-term returns.
- Profitability Track Record: Despite recent profitability, Urban Company has a history of losses, which warrants careful evaluation.
- Market Volatility: The grey market premium is speculative and may not accurately predict actual listing gains.
Conclusion
The Urban Company IPO presents an exciting opportunity for investors interested in the growing home services sector. The current GMP suggests strong market interest, but potential investors should weigh the company's valuation and profitability history before making investment decisions.
