Urban Company, India’s largest home services marketplace, is all set to launch its Initial Public Offering (IPO) in September 2025. The company, earlier known as UrbanClap, connects customers with professionals for services like home cleaning, beauty, wellness, appliance repair, and more. With the upcoming IPO, Urban Company is entering the public market to raise funds for expansion and strengthen its financial position.
IPO Details
- IPO Opening Date: September 10, 2025
- IPO Closing Date: September 12, 2025
- Anchor Investors Bidding: September 9, 2025
- Expected Allotment Date: September 15, 2025
- Listing Date (BSE & NSE): September 17, 2025
The company plans to raise ₹1,900 crore through this issue, which includes a fresh issue of shares worth ₹472 crore and an offer for sale of shares worth ₹1,428 crore from existing investors.
Price Band and Lot Size
- Price Band: ₹98–103 per share
- Lot Size: 145 shares
- Minimum Investment (Retail): ₹14,935 at the upper band
The IPO has been structured to attract different categories of investors. Around 75% of the shares are reserved for institutional investors, 15% for non-institutional investors, and 10% for retail investors. Employees will also get a discount per share in the reserved quota.
Valuation
At the upper price band, Urban Company’s valuation is estimated to be around ₹14,100–14,800 crore, which is nearly $1.7 billion. This makes it one of the most awaited tech-driven IPOs in India for 2025.
Financial Performance
Urban Company has shown strong growth in recent years:
- FY 2024–25 Revenue: Around ₹1,144 crore, marking a 38% increase compared to the previous year.
- FY 2024–25 Profit: Net profit of approximately ₹239 crore, making it the company’s first full profitable year.
- Q1 FY 2025–26 Revenue: ₹367 crore
- Q1 FY 2025–26 Net Profit: ₹6.9 crore
This consistent growth reflects the rising demand for professional home services across India.
Use of Funds
The fresh issue of ₹472 crore will be used for:
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- Strengthening technology and cloud infrastructure
- Office expansion and lease commitments
- Marketing and promotional activities
- General corporate purposes
Grey Market Premium (GMP)
Ahead of the issue, Urban Company IPO has seen active interest in the grey market. Reports suggest a premium of nearly ₹25–30 per share, which signals strong investor confidence and the possibility of positive listing gains.
Why Investors Are Interested
- Urban Company is a leader in the organized home services segment, a sector with high growth potential.
- The company has achieved profitability after years of investment in growth and customer acquisition.
- The IPO offers a chance to invest in a rare consumer-tech platform with strong brand recognition in India.
Conclusion
The Urban Company IPO is generating significant buzz among retail and institutional investors. With solid financial growth, profitability, and strong market leadership, the offering could attract wide participation. Investors should evaluate the price band, lot size, and financial performance before making a decision.
Disclaimer: This article is for informational purposes only. It is not financial advice. Investors should consult with their financial advisors before investing in any IPO.
