Urban Company Shares Jump Over 8% Ahead Of Lock-In Expiry

SUMMARY

The rally came a day ahead of the end of the company’s one-month shareholder lock-in period tomorrow

Urban Company made a strong debut on the bourses last month, getting listed at INR 161 on the BSE,a premium of over 56% to the issue price

The company’s IPO, which comprised a fresh issue of INR 472 Cr and an offer-for-sale (OFS) element of INR 1,428 Cr, was subscribed 103.6X

Shares of home services company Urban Company surged as much as 8.4% to INR 163.20 on the BSE during the intraday trading today, after a five-day losing streak that had pushed the stock below its listing price.

However, the shares pared some of the gains and were trading 5.9% higher at INR 159.50 at 11:12 IST. The company’s market capitalisation stood at INR 22,902.64 Cr (around $ 2.5 Bn), with about 1.8 Cr shares traded by that time.

The rally came a day ahead of the end of the company’s one-month shareholder lock-in period tomorrow. A CNBC TV18 report, citing Nuvama Alternative & Quantitative Research, said about 4.15 Cr shares of Urban Company (around 3% of its total equity) will become eligible for trading once the lock-in expires. Based on the current market price, these shares are valued at approximately INR 651 Cr.

Urban Company made a strong debut on the bourses last month, getting listed at INR 161 on the BSE – a premium of over 56% to the issue price. Later, the stock touched a post-listing high of INR 201 per share on September 22.

The company’s IPO, which comprised a fresh issue of INR 472 Cr and an offer-for-sale (OFS) element of INR 1,428 Cr, was subscribed 103.6X.

Accel, Elevation Capital, Tiger Global were among the investors who offloaded shares via the OFS, raking in up to 27X gain.

Urban Company plans to use the IPO proceeds for technology development and enhancing its cloud infrastructure, covering lease payments for office spaces, funding marketing activities, and supporting general corporate purposes.

The 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. It is also working on its own line up of air conditioners currently.

Earlier this year, it launched its 15-minute maid booking service Insta Help and home makeover offering Revamp.

The company turned profitable ahead of its IPO in FY25. It posted 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.