Urban Company IPO 2025: Details, Subscription Highlights, and What Investors Need to Know

Urban Company IPO 2025

Urban Company, India’s leading tech-enabled home services marketplace, launched its much-awaited Initial Public Offering (IPO) from September 10 to 12, 2025. The IPO saw remarkable demand and robust investor interest, raising ₹1,900 crore at a price band of ₹98 to ₹103 per share.

About Urban Company

Founded in 2014, Urban Company connects customers with trained professionals across multiple home and beauty service categories such as cleaning, plumbing, electrical, pest control, and wellness. It operates in 51 cities including India, UAE, and Singapore, leveraging AI-driven technology to optimize service quality and customer experience. The company reported a healthy revenue of ₹1,144.5 crore in FY25, posting a net profit of ₹240 crore, marking a positive financial turnaround.

IPO Structure and Launch Details

Urban Company’s IPO consisted of:

- Fresh issue: ₹472 crore (4.58 crore shares)

- Offer for sale (OFS): ₹1,428 crore (13.86 crore shares by existing shareholders)

- Price band: ₹98–₹103 per share

- Lot Size: 145 shares with retail minimum investment around ₹14,935

- IPO Size: ₹1,900 crore

The IPO opened on September 10 and closed on September 12, 2025, with allotment scheduled for September 15 and listing on the NSE and BSE on September 17.

Strong Subscription and Investors’ Enthusiasm

The IPO witnessed oversubscription of 15.73 times overall by the final day, notably with retail investors leading at 24.1x subscription. Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) also showed solid interest with 2.4x and 36.79x subscription rates, respectively. The Grey Market Premium (GMP) hit a high of 36-40%, indicating positive market sentiment and a likely strong debut listing price close to ₹140 per share.

Purpose of the IPO Proceeds

Funds raised through the fresh issue will be deployed in:

- Technology development and cloud infrastructure enhancement

- Marketing and customer acquisition campaigns

- Lease payments for corporate office expansion

- General corporate purposes

The OFS proceeds will go to existing shareholders without impacting the company’s cash reserves.

Market Outlook and Analyst Reviews

Brokerage house analysts recommend a long-term investment perspective citing Urban Company’s scalable platform, first-mover advantage, and robust growth potential. With improving profitability margins and consistent revenue growth (38% YoY), the company is positioned well to expand deeper into existing markets and launch new service categories. However, the IPO is priced at a premium with P/E ratio estimated around 65x fiscal 2025 earnings, suggesting limited near-term gains.

Conclusion

Urban Company’s IPO garnered enthusiastic participation across retail and institutional investors, underscoring confidence in the company’s tech-driven service marketplace and future growth. With listing slated for mid-September, all eyes will be on its market debut and long-term performance in the growing home services sector, making it a key IPO to watch in 2025’s equity markets.