Urban Company IPO GMP At 18% Ahead Of Opening Next Week; Check Expected Listing Price

Urban Company is set to launch its initial public offering (IPO) to raise Rs 1,900 crore from the primary market. The company runs an online marketplace providing home and beauty services. Ahead of its opening, the grey market premium (GMP) indicated a premium of over 18% for the issue. Investors who want to bid for shares in the IPO must check the following details before making an investment call.

According to InvestorGain, the GMP for the Urban Company IPO stood at Rs 19 as of 12:35 p.m. on Sept. 5. It indicates a listing price of Rs 122 apiece at a premium of 18.45% on the upper limit of the price band. 

Note: GMP does not represent official data and is based on speculation.

The Urban Company IPO is a book build issue of Rs 1,900 crore. It comprises a fresh issue of 4.58 crore shares amounting to Rs 472 crore and an offer-for-sale (OFS) of 13.86 crore shares worth Rs 1,428 crore.

To participate in the IPO, retail investors need to bid for a single lot size of 145 shares, requiring an investment of Rs 14,935. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,09,090. Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 67 lots. It will lead to an investment of Rs 10,00,645.

The price band for the IPO is set between Rs 98 and Rs 103 per share. 

Investors can participate in the IPO from Sept. 10 to Sept. 12. The allotment of shares is proposed to be finalised on Sept. 15. The company will transfer shares to the demat accounts of successful bidders on Sept. 16 and refunds for non-allottees will be done on the same day. 

Shares of Urban Company will be listed on the BSE and NSE on Sept. 17.

Qualified Institutional Buyers (QIBs) will be offered at least 75% of the net offer. Retail investors will be allocated a maximum of 10% of the net offer and up to 15% will be reserved for Non-Institutional Investors. 

Kotak Mahindra Capital Company Ltd. is the book running lead manager and MUFG Intime India Ltd. is the registrar of the issue.

The company will use proceeds from the IPO to develop new technology, invest in cloud infrastructure, marketing and for general corporate purposes.

The company runs an online marketplace that provides various home and beauty services. Using the platform, consumers can book services such as plumbing and beauty treatment.

The company reported a 45% year-on-year (YoY) decline in its profit after tax (PAT) to Rs 6.94 crore in Q1FY26 from Rs 12.62 crore in Q1FY25. Revenue from operations rose 30.8% YoY to Rs 367.3 crore in Q1FY26 from Rs 280.9 crore in Q1FY25.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.