Urban Company IPO: Price band
The Gurugram-based company is selling its shares in a fixed price band of ₹98-103. Investors can apply for a minimum of 145 shares and in multiples thereafter.Considering the upper end of the price band, Urban Company is valued at ₹14,790 crore.
What brokerages say
Urban Company’s IPO has attracted a positive response from leading brokerages, many of whom recommend subscribing to the issue with a long-term investment horizon.
While valuations appear premium, analysts are optimistic about the company’s scalable business model, strong unit economics, and leadership in an underpenetrated home services market.
SBI Securities: Subscribe for long term
SBI Securities has recommended subscribing to Urban Company’s IPO for the long term. The brokerage in its note mentioned the company’s wide portfolio of household services catering to the evolving needs of urban consumers. With a large addressable market, mostly served by the unorganised sector, Urban Company is well-positioned to benefit from formalisation and digital adoption.
The company’s Net Transaction Value (NTV) and revenue have grown at a CAGR of 25.5% and 34.1%, respectively, over FY23-25. Profitability is also on an improving trajectory, with EBITDA break-even expected by FY26E.
At the upper price band, Urban Company is valued at 12.9x price-to-sales (P/S) on post-issue capital, which SBI considers reasonable given its growth potential.
Anand Rathi: Subscribe for long term
Anand Rathi echoed a similar sentiment, assigning a ‘Subscribe – long term’ rating to the IPO. The brokerage believes the issue is fully priced but maintains that Urban Company’s strong network effects and differentiated platform make it an attractive long-term bet.
Urban Company operates a multi-category, hyperlocal marketplace for home and beauty services. Its in-house training programs, proprietary tools, and defined service standards contribute to high service quality.
Additionally, the company leverages technology for efficient customer acquisition, smooth fulfilment, and professional empowerment. These, along with its trusted brand and scale advantages, are expected to drive sustained growth and customer loyalty over time.
Mehta Equities: Subscribe for long term (with risk)
Mehta Equities also advised subscribing to the IPO, albeit with a degree of caution. Rajan Shinde, Research Analyst at Mehta Equities, views Urban Company as a leading tech-enabled platform with scalable operations across over 12,000 micro-markets in India and select international geographies.He pointed out that the company may command a valuation premium over its internet-tech peers due to superior unit economics, a premium service mix, and deeper supply-side integration.
However, Shinde said that the valuation leaves limited room for near-term upside, and a sustained pace of growth and margin expansion is critical to justify it. Therefore, he recommends the IPO for risk-tolerant investors looking for long-term exposure to India’s growing home services sector.
Urban Company IPO: Anchor book
Urban Company has raised ₹854 crore from anchor investors ahead of its IPO opening.
Some of the marquee names who participated in the anchor round include SBI Fund, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Pru Life, SBI Life, Citigroup, Goldman Sachs among others.
Urban Company IPO: GMP today
According to market observers, shares of Urban Company are commanding a GMP of 37% in the grey market today. Investorgain pegged the premium at ₹38 per share.
Urban Company IPO: Other details
The IPO comprises a fresh issue of equity shares worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. Key shareholders offloading stakes under the OFS include Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte. Ltd, and VYC11 Ltd.
The listing will provide partial exits to early backers such as Accel India, Elevation Capital, and Tiger Global. Proceeds from the fresh issue will be used for marketing initiatives and technology upgrades, according to the company’s prospectus.
Company overview
Urban Company is a technology driven, full-stack online services marketplace for quality driven solutions and services in 51 cities across India, United Arab Emirates (UAE) and Singapore. The market of Saudi Arabia is served through a JV.
The company’s platform enables customers to easily order services like cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, on demand home-help assistance, painting, skincare, hair grooming, massage therapy, etc which are delivered by trained and independent service professionals.
Book-running lead managers
Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are the book-running lead managers, while MUFG Intime India is the registrar to the issue.
The IPO allotment is likely to be finalised on September 15, with tentative listing on BSE and NSE scheduled for September 17, 2025.
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