Urban Company's Rs 1,900 Crore IPO Opens with 28% Grey Market Premium

On September 10, 2025, Urban Company's highly anticipated Rs 1,900 crore Initial Public Offering (IPO) will open for subscription. The IPO is garnering significant attention in the grey market, where the premium has surged to 28% above the upper price band of Rs 103 per share.

The offer consists of a fresh issue worth Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore from existing shareholders. The subscription period will last three days, closing on September 12. The price band has been fixed between Rs 98 and Rs 103 per share.

Analysts have cautioned about the relatively high valuation of the IPO, which is priced near 12 times sales. However, long-term investors may find value in the tech-enabled services platform's growth potential. Urban Company has established itself as a leader in the sector, with a strong brand and a focus on boosting service partner earnings.

The company has completed over 97 million service orders across India and is projected to see a CAGR of 25.5% in Net Transaction Value and 34.1% in revenue during FY23-25. While profitability is improving, with EBITDA breakeven expected by FY26, the high valuation may limit short-term upside for investors.