Urban Company IPO: Anticipated Strong Market Debut with GMP Suggesting a Potential 50% Gain for Investors.

Sep 17, 2025
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Urban Company is set to make its debut on the Indian stock market today, September 17, 2025, after its initial public offering (IPO) garnered significant attention from investors. The ₹1,900 crore IPO, a combination of a fresh issue of ₹472 crore and an offer for sale (OFS) of ₹1,428 crore, was open for subscription from September 10 to 12. The IPO allotment was finalized on September 15, 2025.

Subscription Status and GMP

The Urban Company IPO witnessed strong investor demand, being oversubscribed by 108.98 times. The retail portion was subscribed 41.49 times, the qualified institutional buyers (QIB) category 147.35 times, and the non-institutional investors (NII) segment 77.82 times.

Ahead of the listing, the grey market premium (GMP) for Urban Company's IPO has been fluctuating, but generally signaling a positive debut. As of September 15, 2025, the GMP stood at ₹68.5, suggesting an estimated listing price of ₹171.5, a 66.50% gain per share over the upper price band. However, more recent reports indicate a GMP of around ₹52 to ₹54, translating to a listing price of approximately ₹155 to ₹157, which is still nearly 50% above the IPO price of ₹103 per share.

It's important to note that the GMP is an unofficial indicator of market sentiment and is not regulated by stock exchanges or SEBI.

Financial Performance and IPO Objectives

Urban Company reported a profit after tax of ₹239.76 crore in the year ended March 31, 2025, a significant turnaround from a net loss of ₹92.77 crore in FY24. The company's revenue from operations also increased by 38.21% to ₹1,144.46 crore in FY25 from ₹828.01 crore in FY24. The revenue for FY25 was later updated to ₹1,260.68 crore.

The company intends to utilize the net proceeds from the fresh issue for various purposes, including: development of new technology and cloud infrastructure (₹190 crore), lease payments for office spaces (₹75 crore), marketing and brand promotion (₹90 crore), and general corporate purposes. A significant portion of the IPO, ₹1,428 crore, will go to early investors cashing out through the offer for sale.

Anchor Investors

Prior to the IPO, Urban Company secured ₹854 crore from anchor investors on September 9, allotting over 8.29 crore shares at ₹103 each. The anchor book saw participation from 29 mutual fund schemes across 13 fund houses, along with prominent global and domestic institutions, including Nomura, Aditya Birla Sun Life, UTI, and Goldman Sachs.

Valuation

At the upper price band of ₹103, Urban Company is valued at a P/E of 65.7x to its FY25 earnings, with a P/S of 12.9 and a post-issue market cap of ₹14,789.5 million. According to calculations, Urban Company's IPO pegs its post-issue market cap at ₹14,790 crore. On revenue multiples, it is being priced at an EV/Revenue of 12.45x (post-IPO) against 12.04x pre-issue.

Listing Details

The Urban Company IPO listing date is today, September 17, 2025, and the shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The IPO price band was ₹98 to ₹103 per share, with a lot size of 145 shares.

Written By

Priya Joshi

Driven by social justice, a commitment to advocacy, and a passion for sports, Priya is focusing her early journalistic efforts on highlighting inequality and marginalization in her community. She's learning to report on sensitive topics with empathy and accuracy, ensuring vulnerable voices are heard. Her dedication to sports also fuels her understanding of fair play and collective effort, principles she brings to her reporting.