Urban Company IPO: Price Band, Analysis, Allotment And GMP

Urban Company IPO - Company Analysis

Urban Company IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 1900 Cr (~18.44 crore Shares) by Urban Company Ltd., which was incorporated in 2014, and leverages technology to offer beauty and home services via a fully digital interface.

As of 30 June 2025, excluding the company’s joint venture in the Kingdom of Saudi Arabia, the company operates in 51 cities across India, the UAE, and Singapore.

The operation of the platform allows consumers to book services for cleaning, plumbing, electrical work, beauty and massage, and therapy, performed by licensed and vetted professionals.

The company also entered the home solutions category by launching water purifiers and electronic door locks under its brand Native. It provides service professionals with tools, training, financing, insurance, and branded equipment to increase the service quality and earning potential.

In the nine months to December 2024, Urban Company was the leading online home and beauty services platform by net transaction value. Covered by less than 1% online, the Indian home services market is estimated to grow from $59.2 billion in 2024 to $97.4 billion in 2029, exposing a considerable opportunity for online service solutions.

The company specializes in:

• Sales for the e-commerce platform for consumers of the professional service.

• Sales to the service industry professionals of the products.

• Sales to the consumers of the native products.

Urban Company IPO Details

The Urban IPO open date is from Sep 10 to Sep 12, with IPO allotment on Sep 15, refund initiation on Sep 16, 2025. 

The Rs. 1900 Cr mainline IPO comprises a combination of fresh issue of 4.58 crore shares (Rs. 472 Cr) and an offer for sale (OFS) of 13.86 crore shares (Rs. 1428 Cr).

The Urban Company IPO listing date might be on Wednesday, 17 September 2025, and it will be listed at the BSE and NSE. The Urban Company IPO price band is Rs. 98 to Rs. 103 for each Share. 

Events	Date
IPO Opening Date	Sep 10, 2025
IPO Closing Date	Sep 12, 2025
IPO Allotment Date	Sep 15, 2025
Refund Initiation	Sep 16, 2025
Tentative IPO Listing Date	Sep 17, 2025

 
Urban Company Promoters and Companies Investment

Promoter Abhiraj Singh Bhal and others own around 9.77 crore shares that were purchased for negligible value. Their respective holdings are now worth somewhat more than Rs. 1,000 crore each, a more than 10,000x increase in value.

(Source: RHP and Moneycontrol)

Urban Company IPO- Hidden Facts

1. Kent RO Case Against Urban Company  

Kent RO Systems Ltd has accused Urban Company of trademark infringement, in particular through the advertising and service listing of the “Kent” brand.  

This shows possible internal and external legal risks that may tarnish the image of the company and affect its business activities.

2. Massive Pre-IPO Bonus Share Issuance  

On 31 January 2025, a resolution was approved to issue 2,499 bonus shares for each existing share. This was allotted on 13 February 2025.  

This brought the average cost of acquisition for promoters and early investors to almost zero (approximately Rs. 0.01 per share).  

3. Outlined Losses of Foreign Subsidiaries  

The Singapore-based subsidiary, Urban Home Experts Pte Ltd, has been a consistent loss-maker. FY 2025: Rs. 455 Cr loss  

The foreign expansion is losing money substantially, while the Indian operations are stable.

4. KSA (Saudi) JV Subtly Downplayed.  

The RHP mentions operations in 51 cities in India, the UAE, and Singapore, but the KSA joint venture is absent and referred to as “JV” in the RHP.  

This indicates that the operational and financial performance of the KSA is not captured in the KSA financials and is not available to the IPO investors.  

5. Legal Action Taken Against the Founders.  

The Bangalore Labour Commissioner has sent two notices of violations of labour laws to the founders, namely, Abhiraj Singh Bhal, Raghav Chandra, and Varun Khaitan.  

This rather important information is hidden under the litigation heading, although it is still to be covered by the mainstream press.  

Industry Outlook

With a total addressable market ("TAM") of over US$60 billion in FY2025 and a predicted CAGR of 10–11%, the home services sector in India offers a sizable market opportunity, with a target of US$100 billion in FY2030.

(Source: CRISIL MI&A)

If you want to apply for the IPO, click to open a Demat Account.

 

Company Financial 

(Amount in Cr)

Period	31 Mar 2025	31 Mar 2024	31 Mar 2023
Total Assets	2,200.64	1,638.65	1,631.22
Total Revenue	1,260.68	927.99	726.24
PAT	239.77	-92.77	-312.48
EBITDA	12.09	(1,19.01)	(2,97.69)
Net Worth	1,781.28	1,292.64	1,339.46
Reserves and Surplus	2,646.12	2,404.69	2,402.82

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	31 Mar 2025	31 Mar 2024	31 Mar 2023
Net Cash Flow Operating Activities	545.58	(855.75)	(2,377.98)
Net Cash Flow Investing Activities	(1,994.51)	954.01	2,987.79
Net Cash Flow Financing Activities	1,638.84	(299.06)	(252.82)

Revenue Bifurcation 

Revenue from Operations Breakdown

(Source RHP)

The Objective of The Issue

• Spending on cloud infrastructure and new technology development. ~Rs. 190 Cr.

• Expenses for office lease payments. ~Rs. 75 Cr.

• Expenses for marketing. ~Rs. 90 Cr.

• General corporate purposes.

Click to check the IPO application status.

 

Listed Peers of Urban Company Ltd.

No listed peer of a similar size is engaged in the same lines of business as mentioned in the RHP.

Valuation

Metric	Value
Price to Book Value	8.27
RoNW	13.35%

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. 1.66 from the last year, the resulting P/E ratio is 62.04x. 

Explore the Shreeji Shipping Global IPO.

IPO's Strengths 

• Network effects help the hyperlocal, multi-category home services sector.

•  Consumers trust this well-known brand.

•  Access to tools and consumables as well as internal training that raises the caliber of service personnel.

• Strong technological foundation supporting customer expansion, service provider empowerment, and service fulfillment.
  
  
  

IPO’s Weaknesses 

• Problems with Quality, Brand, and Reputation.

• Profit from Deferred Taxation.

• Sustainability  Regulatory Obstacles. 

• Risk of Litigation Platform Circumvention

Urban Company IPO GMP 

Urban Company IPO GMP today is Rs. 8 as of 03 Sep 2025, while writing this information. Hence, the Urban Company IPO listing price (estimated) might be Rs. 111 (upper price + current GMP or grey market premium).

Urban Company Limited IPO Summary

IPO Opening & Closing Date	Sep 10, 2025 to Sep 12, 2025
Face Value	Rs. 1 per Share
Issue Price	Rs. 98 to Rs. 103
Lot Size	145 Shares
Issue Size	18,44,66,018 Shares (Rs. 1900 Cr)
Offer for Sale	13,86,40,776 Shares (Rs. 1428 Cr)
Fresh Issue	4,58,25,242 Shares (Rs. 472 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	MUFG Intime India Pvt. Ltd.

 

Urban Company IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (145 Shares) amounting to Rs. 14935 and 13 Lots (1885 Shares) amounting to Rs. 194155, respectively, while for S-HNI investors, the minimum Lot is 14 (2030 Shares) amounting to Rs. 209090.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	66 Lots
BHNI (Minimum)	67 Lots

 

Urban Company IPO Reservation

Institutional Share Portion	75%
Retail Investors' Share Portion	10%
Non-Institutional Shares Portion	15%

Urban Company IPO Allotment Status

To check the Urban Company IPO allotment status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using BSE Website - ​BSE IPO allotment status

Promoters And Management of Urban Company Ltd.

• Abhiraj Singh Bhal

• Raghav Chandra

• Varun Khaitan.

Pre-Issue Promoter Shareholding	21.09%
Post-Issue Promoter Shareholding	-

Urban Company IPO Lead Managers

• Kotak Mahindra Capital Co. Ltd. 

Dividend Policy

The company has not paid a dividend during the last three years.

Conclusion

The Rs. 1,900 Cr tech-driven Urban Company IPO combines scalable operations in the digital home services sector, great brand value, and significant development potential are some of its advantages. The management of quality and reputation, legal uncertainty, a significant reliance on deferred tax profit, and user circumvention of the platform are the main threats. Strong revenue growth and the recent return to profitability should be noted by investors, but they should also take high valuations and risks related to operational sustainability into account.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.