[Update] Urban Company IPO: Issue Oversubscribed 3.1X On Day 1

Updated | September 10, 17:45 IST

The public issue of Urban Company was oversubscribed 3.1X on the first day of bidding, receiving bids for 33.3 Cr shares against 10.6 Cr shares on offer. 

Retail investors showed the highest interest in the IPO, with the portion reserved for them getting oversubscribed 7X. They placed bids for 13.5 Cr shares while the company had reserved 1.9 Cr shares for them. 

Employees’ portion was oversubscribed 5.7X, with them placing bids for 16.2 Lakh shares against 2.8 Lakh shares on offer. 

The QIB and NII portions were also oversubscribed at 1.3X and 4.2X, respectively. While QIBs applied for 7.5 Cr shares against 5.8 Cr shares reserved for them, NIIs placed bids for 12 Cr shares against 2.9 Cr shares on offer. 

Under the QIB section, foreign institutional investors placed the bids for the highest number of shares at 4.6 Cr. 

Original | September 10, 11:13 IST

Hyperlocal services company Urban Company saw a decent start to its IPO, led by interest from retail investors. The retail portion of the public issue was oversubscribed 1.3X at 10:45, receiving bids for 2.6 Cr shares against 1.9 Cr shares reserved for them. 

The portion reserved for employees was also oversubscribed 1.53X, receiving bids for 4.3 Lakh shares against 2.8 Lakh shares on Offer. 

Qualified institutional buyers (QIBs) placed bids for 1.1 Cr shares against 5.8 Cr shares reserved for them, resulting in 20% subscription. Meanwhile, non-institutional investors (NIIs) bid for 2.3 Cr shares against 2.9 Cr shares on offer. The portion reserved for NIIs was subscribed 80%.

Overall, the issue was subscribed 57%, with investors bidding for 6 Cr shares against 10.7 Cr shares on offer. 

The IPO saw a strong start on the back of the company’s strong brand presence in the highly unorganised sector it operates in, high retention rates, and its profitability. 

In a note, SBI Securities said that Urban Company has established a strong brand presence and was the highest searched name on Google trends between January 2024 and March 2025. In FY25, the company derived 82% of its net transaction value by retaining customers. 

“… We recommend subscribing to the issue with a long-term investment horizon…” SBI Securities said. 

Urban Company is looking to raise INR 1,900 Cr via its IPO, which comprises a fresh issue of up to INR 472 Cr and OFS component of up to INR 1,428 Cr.

The company has set a price band between INR 98 to INR 103 for its IPO and will be valued at around INR 14,000 Cr (about $1.5 Bn) at the upper end of the price band. The company raised INR 853.9 Cr in its anchor round yesterday. 

The IPO will close on Thursday (September 12) and the shares are expected to list on the exchanges on September 17.

The Bengaluru-based company plans to deploy the fresh proceeds from the IPO towards improving its tech stack, making lease payments for its offices and shore up its marketing efforts to build a strong brand. 

Urban Company started its operations in 2014 as a marketplace to connect home service professionals with customers. In 2023, it forayed into consumer electronics under the brand name ‘Native,’ selling water purifiers and smart door locks. Now, it is working on its own line up of air conditioners.

This year, the company also launched its 15-minute maid booking service Insta Help and home makeover offering Revamp. 

Urban Company achieved profitability in FY25, posting a net profit of INR 239.7 Cr as against a net loss of INR 92.7 Cr in the previous fiscal year. Operating revenue zoomed 38.2% to INR 1,144.4 Cr from INR 828 Cr in FY24.

Giving a breakdown of its revenue during a press briefing last week, cofounder and MD Abhiraj Singh Bhal said the company earned INR 1,028 Cr from its consumer business. Of this, the Indian market accounted for INR 881 Cr and the remaining INR 147 Cr came from international markets. Outside India, the company has a presence in the UAE, Kingdom Of Saudi Arabia, Singapore among others. 

The company’s Native brand contributed INR 116 Cr to its top line in FY25. 

According to a Redseer research, the Indian homeservice market is expected to become a $100 Bn opportunity by 2030. Urban Company competes with the likes of Pronto, Clean Fanatics, among others, in this segment.