Urban Company IPO Date, Price, GMP, Review, Details, Company background, Financial reports
Urban Company IPO opens Sept 10 with ₹2,000 crore issue. Check price band, GMP, subscription status, company background, and financial review.
Urban Company is a tech-platform/marketplace for home & beauty/repair services. Services include cleaning, pest control, plumbing, appliance repair, painting, salon & spa, massage etc. They also have a product-vertical called Native (water purifiers, smart door locks etc.).
Founded in 2014, originally as UrbanClap, rebranded as Urban Company. Headquarters in Gurugram (Delhi NCR), India. Operates in multiple geographies: India is the main market; also UAE, Singapore; Saudi Arabia via a joint venture.
Urban Company IPO Details
| Parameter | Detail |
|---|---|
| IPO Opening Date | September 10, 2025 |
| IPO Closing Date | September 12, 2025 |
| Issue Size | ₹1,900 crore total |
| Fresh Issue / OFS Split | Fresh issue ~ ₹472 crore; OFS (Offer for Sale) ~ ₹1,428 crore |
| Price Band | ₹98 to ₹103 per share |
| Lot Size | 145 shares per lot; minimum investment ~ ₹14,935 at upper price band |
| Employee Discount | ₹9 per share for eligible employees |
| Allotment Date | September 15, 2025 (tentative) |
| Listing Date | September 17, 2025 (expected) |
Grey Market Premium (GMP) & Subscription Status
- GMP: ~ ₹39 per share, which is ~ 38–40% premium over the upper price band (₹103).
- Subscription (Day 2): Oversubscribed ~ 6.85× overall by mid-Day 2. Retail, NIIs showing strong demand; QIBs lag somewhat.
Company Background
- Founded: 2014, by Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra. Headquartered in Gurugram (Delhi NCR)
- What they do: Urban Company is a tech-platform / marketplace for home & beauty / wellness / repair services. Consumers can book services like cleaning, appliance repair, plumbing, beauty, pest control, etc. Also they have products (e.g. under “Native”) and newer categories like micro-help (“InstaHelp”) or daily tasks.
- Geography: Primarily India; also operating in select overseas markets (UAE, Singapore, Saudi Arabia) per disclosures.
Financial Performance
| Metric | FY 2024-25 | |
|---|---|---|
| Revenue from operations | ~ ₹1,145 crore (≈ 38% YoY growth) | |
| Net Profit | ₹240 crore (includes deferred tax credit of ~₹211 crore) | |
| Pre-Tax Profit | ~ ₹28 crore (excluding tax credit) | |
| Adjusted EBITDA / Margins | The company turned around from an adjusted EBITDA loss to modest profitability or near‐break-even in FY25. It also reported positive operating cash flow (~₹54.6 crore) in FY25. Contribution margins ~19.5% of Net Transaction Value (NTV) in India consumer services. |
Urban Company IPO Valuation & Analyst View
- At upper price band (₹103), IPO values the company at ~ ₹14,700-₹14,800 crore market cap.
- Key ratios: P/E ~ 65.7× (FY25 earnings) and P/S ~ 12.9× at upper band.
- Broker consensus: Many view it as “fully priced”, but most recommend “Subscribe – Long Term” given growth opportunity in home services sector.
Review: Positives & Risks
Strengths / Upside:
- First profitable full year (FY25) — signals business model is maturing.
- Strong revenue growth (38%) — showing market demand.
- High GMP & subscription demand — suggests strong listing potential and investor confidence. Diversified service categories and product adjacencies (beauty, repair, wellness, etc.), as well as innovations in offerings.
Risks / Points of Caution:
- Profit boosted significantly by deferred tax credit; core profit margins excluding that are modest.
- Valuation is high (P/E and P/S) compared to many peers; leaves little margin for mistakes.
- QIB demand somewhat muted; institutional participation may affect post-listing performance. Reliance on service professionals (gig workers); retention, quality, cost of onboarding, etc., are critical risks. Also competition from offline and regional/unorganized players.
Conclusion: Is It Worth Considering?
If you are a medium-to-long term investor who believes in:
- The formalisation and growth of home & beauty / repair / wellness / gig-service sectors in India,
- Urban Company’s ability to scale, maintain quality, and improve margins over time, then this Urban Company IPO has attractive potential.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
