10 Sep 2025: The much-anticipated initial public offering (IPO) of Urban Company, India’s leading home services marketplace, opened for public subscription today. With a robust grey market premium (GMP) of nearly 35%, investors are debating whether the issue is worth subscribing to or if they should wait and watch.
IPO Details:
Urban Company aims to raise around ₹2,000 crore through its IPO, which includes a fresh issue of shares worth ₹1,200 crore and an offer-for-sale (OFS) by existing investors. The price band has been fixed at ₹395–₹420 per share, and the bidding window will remain open until September 12.
Grey Market Premium (GMP):
The IPO is commanding a healthy GMP of about ₹145, indicating strong demand in the unofficial market. If this premium sustains, the listing could see a significant upside for early investors.
Company Profile:
Founded in 2014, Urban Company connects consumers with verified professionals offering services such as salon treatments, appliance repair, plumbing, painting, and home cleaning. With over 50,000 service partners and a presence in more than 50 cities across India and select international markets, the company has become a household name for urban households.
Financial Performance:
Urban Company has reported a strong 40% year-on-year revenue growth in FY25, narrowing its losses and inching toward profitability. Its focus on training and upskilling partners, along with robust technology integration, has given it a competitive edge.
Analyst View:
Brokerage houses have given a mixed verdict. Optimists highlight the company’s strong market position, impressive growth trajectory, and high entry barriers in the tech-enabled services space. However, some analysts remain cautious, pointing to its still-thin margins and the risks of scaling operations profitably in a highly fragmented services sector.
Key Risks:
Urban Company faces challenges such as attrition of service partners, regulatory scrutiny regarding gig workers’ rights, and competition from smaller players in niche markets. These factors could affect long-term margins.
Investor Sentiment:
Early bidding data suggests a strong response from retail investors, with the issue already subscribed 1.3 times within the first few hours. Institutional interest will be closely watched over the next two days to gauge long-term demand.
Expert Recommendation:
Experts recommend subscribing for investors with a medium- to long-term view, citing the company’s leadership position, growth potential, and improving financial metrics. Short-term investors should watch the subscription numbers and GMP trend before making a final call.
Summary:
Urban Company IPO opens with strong investor interest, backed by a 35% GMP. Analysts see long-term growth potential but caution on margins. Retail investors are subscribing enthusiastically in early bidding hours.