Urban Company IPO Opens Tomorrow, Grey Market Premium Surges: SEBI Analyst Calls It A 'Buy

Home and beauty services firm Urban Company is finally set to launch its initial public offering (IPO) this week. The subscription will open on September 10 and last till September 12.

The company has fixed the IPO price band at ₹98 to ₹103 per equity share, with plans to raise ₹1,900 crore in total. Of this, ₹472 crore will come from the issue of fresh shares, while ₹1,428 crore is allocated to an offer for sale (OFS) by existing shareholders. The shares will be listed on both the BSE and NSE.

Ahead of its launch, the IPO has already attracted strong interest in the grey market. Urban Company shares are trading at a premium of ₹35, up from ₹28 earlier this week. This suggests an expected listing gain of nearly 28%.

Investors applying for the IPO must bid in lots, with each lot comprising 145 shares. The allotment of shares is expected by September 13, or September 15 in case of delays, while the listing is scheduled for September 17, 2025. MUFG Intime India has been appointed as the registrar for the issue.

Urban Company IPO: Buy Or Skip?

Urban Company is India's largest full-stack online marketplace for home and beauty services, with operations in 51 Indian cities, the UAE, and Singapore. The company has expanded into home solutions with products like water purifiers and electronic door locks under the brand 'Native.' For professionals, it provides training, tools, insurance, financing, and branding support, enhancing service quality and income stability.

By net transaction value, Urban Company led India's online home and beauty services segment in the nine months ending December 2024, according to SEBI-registered analyst Aditya Hujband.  He recommends bidding for the IPO.

The market, valued at $59.2 billion in 2024, is projected to reach $97.4 billion by 2029, with online penetration still below 1%, indicating significant growth potential. As of June 2025, it had over 54,000 active professionals across 12,000+ micro-markets, he said.

The company earns revenue from three streams: platform services for consumers, sale of products to professionals, and sales of 'Native' branded products. Proceeds from the IPO will fund technology development, marketing, lease payments, and general corporate purposes.

Strengths include strong brand equity, scalable operations, and a first-mover advantage, while risks lie in dependence on gig workers, labour issues, competition, and regulatory changes, Hujband added.

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