Urban Company, India's largest tech-enabled home services marketplace, has made a stellar debut on the Indian stock market. On Wednesday, September 17, 2025, the shares listed at ₹162.25 on the National Stock Exchange (NSE), a 57.5% premium over the IPO price of ₹103. On the Bombay Stock Exchange (BSE), the shares debuted at ₹161, a 56% premium. This strong listing marks the best mainboard debut of 2025, surpassing Aditya Infotech's previous record.

The ₹1,900 crore IPO saw an overwhelming response, being oversubscribed by more than 103 times overall. Qualified Institutional Buyers (QIBs) led the demand, subscribing 147 times, followed by Non-Institutional Investors (NIIs) at 77 times and retail investors at 41 times. Ahead of the listing, the grey market premium (GMP) was around ₹52 per share, suggesting a listing price near ₹155.

Founded in 2014, Urban Company connects customers with trained professionals for various home services, including beauty and wellness, appliance repair, cleaning, and maintenance. The company intends to use the IPO proceeds to enhance technology, expand services, and grow geographically.

Financial Performance and Growth

For the fiscal year ending March 31, 2025, Urban Company reported revenue of ₹1,144.5 crore, a 38% increase from ₹830 crore in FY24. The company has shown consistent revenue growth, indicating financial stability. Net profit for the same period stood at ₹290 crore, a significant increase.

Urban Company operates in a market with substantial growth potential. Cleaning and pest control services, which constitute a significant portion of the repair and maintenance market, were valued at ₹93,000–94,500 crore in FY25 and are expected to grow at a CAGR of 9-10% to reach ₹1,50,000–1,53,000 crore by FY30. This growth is driven by increasing awareness of hygiene, the growing demand for convenience in urban households, and a rising preference for professional cleaning services.

Valuation and Expert Opinion

The P/E ratio is approximately 54x based on adjusted earnings. While this is higher than some sector peers, it reflects the company's growth prospects, expanding service base, and improving profitability. Some analysts suggest that despite expensive valuations and a muted market backdrop, the robust IPO response highlights confidence in Urban Company's long-term structural story.

Investment Strategy

Given the strong listing and positive outlook, experts recommend the following strategies:

• For investors who received allotment: Hold the shares for long-term gains, citing Urban Company's strong market position and growth potential. Investors may also consider booking partial profits.
• For investors who did not receive allotment: Wait for post-listing consolidation before entering.

Urban Company's successful IPO and strong market debut reflect investor confidence in its business model and growth prospects. The company's focus on technology, expanding service offerings, and a large addressable market position it well for future growth. However, potential investors should carefully consider the valuation and market conditions before making investment decisions.