Urban Company’s Rs 1,900 crore initial public offering (IPO) has attracted robust demand, with overall subscriptions reaching 5.53 times (553%) by the second day of bidding on Thursday. According to ET, investor sentiment also reflected positively in the grey market, where the IPO traded at around 34% premium (Rs 35 GMP) over the upper price band of Rs 103, implying a potential listing price close to Rs 138.Retail investors showed the strongest appetite, subscribing 10.82 times the 1.93 crore shares allocated to them. Non-Institutional Investors (NIIs) subscribed 7.85 times their quota of 2.90 crore shares, while Qualified Institutional Buyers (QIBs) picked up 1.31 times their 5.80 crore share allocation.The IPO, which remains open until September 12, consists of a fresh issue worth Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore by existing shareholders. The stock is scheduled to list on the NSE and BSE on September 17. Prior to opening, the company had raised Rs 854 crore from anchor investors, including GIC, Fidelity, and Norges Bank.Founded in 2014, Urban Company operates in 47 cities across India and has expanded internationally into the UAE, Singapore, and Saudi Arabia. It connects customers with trained professionals across services such as beauty, cleaning, appliance repair, pest control, plumbing, and electrical work. The company also sells products under its “Native” brand and recently launched InstaHelp, a micro-market initiative.Urban Company reported Rs 1,144.5 crore in revenue in FY25, a 38% year-on-year increase, while turning profitable with a net profit of Rs 240 crore, largely due to a deferred tax credit of Rs 211 crore. Excluding this, pre-tax profit stood at Rs 28 crore.At the IPO’s upper price band, the company is valued at nearly Rs 14,800 crore, with a P/E of 65.7x and P/S of 12.9x, according to ET.Analysts caution that the issue appears fully priced, though brokerages like SBI Securities and Anand Rathi recommend subscribing with a long-term outlook, citing Urban Company’s leadership in India’s Rs 60 billion largely unorganised home services market and potential growth from the formalisation of the sector.
