Urban Company Ltd’s highly anticipated IPO opens September 10, 2025. Explore the ₹1,900 cr offer, price band (₹98–₹103), lot size, reservation, financial performance, IPO purpose, and investor insights in this detailed guide.
Introduction
In one of the most anticipated IPOs of 2025, Urban Company Ltd, India’s leading home and beauty services marketplace, kicks off its debut on Dalal Street. With the IPO window opening September 10 and closing September 12, this colossal ₹1,900 cr listing is redefining confidence in Indian tech-sector investments. Read on for a full breakdown—pricing, financial performance, sector strengths, IPO allocations, and more.
IPO Snapshot
- Issue Size: ₹1,900 crore total
- Fresh Issue: ₹472 cr
- Offer-for-Sale (OFS): ₹1,428 cr
- Price Band: ₹98–₹103 per share
- IPO Dates:
- Open: September 10, 2025
- Close: September 12, 2025
- Lot Size: 145 shares (₹14,935 minimum investment)
- Reservation:
- QIBs: 75%
- NIIs: 15%
- Retail: 10% (with employee discount of ₹9/share)
- Allotment & Listing Dates:
- Allotment: September 15
- Listing: September 17 on BSE & NSE
- GMP (Grey Market Premium): ~₹10–₹19 indicating optimistic investor demand
About Urban Company
Founded in 2014 as UrbanClap, Urban Company has become the largest home services platform in India. Its services span beauty, plumbing, electrical, cleaning, pest control, appliance repair, and more—expanding to 51 cities across India and international markets such as the UAE, Singapore, and Saudi Arabia. FY25 was a turning point, with revenue up 36% to ₹1,260.7 cr and a net profit of ₹239.8 cr (vs. a loss of ₹92.8 cr in FY24).
Use of IPO Proceeds
Funds are strategically planned:
- ₹190 cr for technology and cloud upgrades
- ₹75 cr for office lease expenses
- ₹90 cr for marketing initiatives
- Remaining ₹89 cr for general corporate purposes
Strengths & Growth Drivers
- Leading Brand Recognition in tech-enabled home services.
- Platform Scale: Millions of users and tens of thousands of active service professionals.
- Geographic Expansion into global markets.
- Profitability Achieved in FY25, fueled by deferred tax credit.
- Strong IPO Investor Interest, reflected by high QIB allocation and early GMP.
Risks & Caveats
- Gig Workforce Challenges: Retention, regulation, and consistency issues.
- High Valuation: ₹1,900 cr may stretch investor expectations if growth falters.
- Reliance on Tech Infrastructure: IT disruptions or data breaches could impact operations.
- Seasonality & Competition: Consumer spending patterns and alternate platforms may pose threats.
Conclusion
Urban Company Ltd’s IPO is more than a capital exercise—it’s a celebration of India’s tech-enabled consumer economy. With tangible profitability, strong execution, and investor excitement, the company positions itself as a flagship tech IPO of 2025. Savvy investors should weigh its fundamentals against premium pricing to make educated decisions.
FAQs
- When can investors apply for the IPO?
Onboarding opens on September 10, 2025, and closes on September 12, 2025. - What is the price band and lot size?
Shares are priced between ₹98–₹103. One lot equals 145 shares, costing ~₹14,900. - How much is the IPO worth?
Total funds targeted: ₹1,900 cr (₹472 cr fresh + ₹1,428 cr OFS). - When will it list on the stock exchange?
Listing expected on September 17, 2025 via BSE and NSE. - What financial turnaround did Urban Company achieve?
FY25 revenue ₹1,260.7 cr (+36% YoY), and PAT ₹239.8 cr vs. losses in FY24. - How are IPO proceeds allocated?
Majority goes to technology (₹190 cr), lease payments (₹75 cr), marketing (₹90 cr), and the remainder to corporate needs. - Does GMP indicate listing gains?
A GMP of ₹10–₹19 forecasts a potential 10–20% post-listing gain.
Disclaimer
This article is for educational purposes only and does not constitute financial advice. Please consult a certified financial advisor before making any investment decisions.
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