The initial public offering (IPO) of Urban Company, the app-based home and beauty services platform, has closed with an overwhelming response from investors, with a subscription rate soaring to 103.63 times. The IPO, which aimed to raise ₹1,900 crore, witnessed bids for a staggering 11,06,44,73,965 shares against the 10,67,73,244 shares on offer. This enthusiastic participation signals strong market confidence in the company's business model and future prospects.

Subscription Details

The IPO, which was open for bidding from September 10 to September 12, 2025, attracted significant interest from various investor categories. The Qualified Institutional Buyers (QIBs) category was subscribed an impressive 140.20 times, indicating strong institutional interest. The Non-Institutional Investors (NII) segment followed closely with a subscription rate of 74.04 times. Retail Individual Investors (RIIs) also showed considerable enthusiasm, with their portion being subscribed 39.25 times. The employee portion was subscribed 36.79 times.

Anchor Investors

Prior to the IPO opening, Urban Company had already raised ₹854 crore from anchor investors. Prominent domestic and international organizations participated in this round, including Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, Florida Retirement System, Allspring Global Investments LLC (EMSC), Theleme India Master Fund Ltd, and Amundi Funds New Silk Road.

IPO Details

The Urban Company IPO comprised a fresh issue of 4.58 crore equity shares worth ₹472 crore and an offer-for-sale (OFS) of 13.86 crore shares amounting to ₹1,428 crore. The price band for the IPO was fixed at ₹98 to ₹103 per share, with a face value of ₹1 per share. The lot size was 145 shares, requiring a minimum investment of ₹14,935 at the upper price band.

Grey Market Premium (GMP)

The grey market premium (GMP) for Urban Company shares has been robust, indicating strong investor sentiment. On September 12, 2025, the GMP was ₹54 per share, suggesting an estimated listing price of ₹157 per share, a premium of 52.43% over the IPO price of ₹103. However, it's important to note that GMP is just an indicator and not a guaranteed listing price.

Utilization of IPO Proceeds

Urban Company plans to utilize the net proceeds from the IPO for several purposes, including developing new technology and enhancing its cloud infrastructure, covering lease payments for office spaces, funding marketing activities, and supporting general corporate purposes.

About Urban Company

Urban Company, formerly known as UrbanClap, is a technology-driven marketplace that offers a wide array of home and beauty services. It operates in 59 cities across India, the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia. The platform connects consumers with trained and verified service professionals for services such as cleaning, appliance repair, plumbing, carpentry, beauty treatments, and more. The company employs AI-driven algorithms to match customers with suitable professionals based on skills, ratings, location, and availability.

Business Model

Urban Company operates on a full-stack, two-sided marketplace model. It connects customers seeking reliable home services with vetted professionals. The company earns revenue through commissions on service fees paid by customers to service partners, lead generation fees, membership plans for professionals, and advertisements.

IPO Timeline and Allotment

The IPO allotment is expected to be finalized on September 15, 2025. Successful allottees will have shares credited to their demat accounts on September 16, 2025, and refunds will be initiated for unsuccessful bidders on the same day. The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 17, 2025.

Key Parties Involved

Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are the book-running lead managers for the IPO. MUFG Intime India Private Limited is the registrar for the offer.

The overwhelming subscription to the Urban Company IPO reflects strong investor confidence in the company's business model, growth potential, and market position. The focus now shifts to the allotment process and the listing on the stock exchanges.