Urban Company IPO Review and Details
The Indian startup ecosystem is buzzing with excitement as Urban Company, one of India's most prominent home services platforms, prepares for its much-anticipated Initial Public Offering (IPO). This public offering marks a significant milestone for the company and is set to be one of the most talked-about tech IPOs of 2025. This blog post provides a comprehensive review of the Urban Company IPO, covering all the essential details, a deep dive into its business model, and an analysis of its financial performance to help you decide whether to invest.
About Urban Company: From Idea to IPO
Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, Urban Company (formerly UrbanClap) has transformed from a simple idea into a dominant force in the home services industry. The company operates a technology-driven, full-stack online marketplace that connects consumers with skilled and verified service professionals for a wide range of needs. Its services span two major categories: beauty and wellness (salon at home, spa, massage therapy) and home repairs and maintenance (plumbing, electrical work, carpentry, cleaning, and appliance repair). The company's model is built on quality, convenience, and trust, which has enabled it to achieve remarkable scale and profitability.
Urban Company IPO Details
The Urban Company IPO is a book-built issue of ₹1,900 crore. The offering is a combination of a fresh issue and an Offer for Sale (OFS). The fresh issue component will inject new capital into the company, while the OFS will allow early investors and promoters to sell some of their existing shares.
Key Details at a Glance
- Issue Size: ₹1,900 crore
- Fresh Issue: ₹472 crore
- Offer for Sale (OFS): ₹1,428 crore
- Face Value: ₹1 per equity share
- Listing: BSE and NSE
Objectives of the IPO
The company intends to use the net proceeds from the fresh issue for the following key purposes:
- Funding expenditure for new technology development and cloud infrastructure.
- Making lease payments for its offices.
- Funding marketing and brand-building activities.
- General corporate purposes.
Urban Company IPO Dates, Price, and Lot Size
The IPO is set to open for public subscription soon. Here are the crucial dates and pricing details you need to know:
Key Dates (Tentative)
| IPO Activity | Date |
|---|---|
| IPO Open Date | September 10, 2025 |
| IPO Close Date | September 12, 2025 |
| Basis of Allotment Finalization | September 15, 2025 |
| Initiation of Refunds | September 16, 2025 |
| Credit of Shares to Demat Account | September 16, 2025 |
| IPO Listing Date | September 17, 2025 |
Price and Lot Size
| Details | Information |
|---|---|
| Price Band | ₹98 to ₹103 per equity share |
| Minimum Lot Size (Retail) | 145 shares |
| Minimum Investment (Retail) | ₹14,935 (at the upper price band) |
Financials and Urban Company IPO GMP (Grey Market Premium)
Urban Company's financial trajectory has seen a significant turnaround. After years of operating at a loss to scale its operations, the company has now turned profitable. For the fiscal year 2025, it reported a net profit of ₹240 crore on a revenue of ₹1,144 crore, a major leap from its previous losses. This shift to profitability is a major positive for potential investors.
The Grey Market Premium (GMP) is an unofficial indicator of market sentiment. As of today, the GMP for Urban Company is showing a positive trend, suggesting that the shares might list at a premium to the issue price. While GMP is not a definitive measure, a strong premium often indicates high investor demand and the potential for healthy listing gains. It’s a key metric for those seeking short-term returns on their investment.
Urban Company IPO Allotment Status
After the IPO closes, the allotment status will be finalized. The registrar for this issue is MUFG Intime India Pvt. Ltd. You can check your allotment status on the registrar's official website using your PAN number or application number. The shares will be credited to the demat accounts of successful applicants, and refunds for non-allottees will be processed as per the timeline mentioned above.
Disclaimer:
This post is for informational purposes only. Please conduct your own research or consult a financial advisor before investing in any IPO.
Frequently Asked Questions (FAQs)
Urban Company is an online marketplace that provides a wide range of home and beauty services, including salon services, home cleaning, appliance repairs, and more, by connecting customers with verified service professionals.
A retail investor needs to invest a minimum of ₹14,935, which corresponds to one lot of 145 shares at the upper price band of ₹103.
The shares are tentatively scheduled to be listed on the BSE and NSE on September 17, 2025.
The IPO is a mix of both. It includes a fresh issue of ₹472 crore to raise capital for the company and an Offer for Sale of ₹1,428 crore by existing shareholders.
You can check the allotment status on the official website of the registrar, MUFG Intime India Pvt. Ltd., once the allotment is finalized on September 15, 2025.
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