Urban Company IPO GMP Soars As Issue Subscribed Over 8 Times; Check Latest Grey Market Premium

Urban Company, which launched its initial public offering (IPO) to raise Rs 1,900 crore from the primary market on September 10, was fully subscribed on Day 1.

The public issue was booked 3.13 times on Wednesday, led by demand from retail investors who bid 7 times the number of shares offered. Investors poured in by subscribing to 33,37,87,825 shares against the 10,67,73,244 shares on offer. The IPO was subscribed 8.35 times as of 4:00 p.m. on Thursday, according to the data from the NSE.

The company, which operates an online marketplace offering home and beauty services, has also seen its GMP (grey market premium) soar after opening for subscription. The current GMP trends suggest a favorable listing for the IPO when it lists on the stock market next week

As subscription for the issue enters its second day, here's all you need to know about the Urban Co. IPO.

The latest GMP for the Urban Company IPO was Rs 37 as of 3 p.m. on September 11. It indicates a listing price of Rs 140 per share at a premium of 35.92% on the upper limit of the price band.

The unlisted shares of Urban Company were trading at Rs 140 when the issue opened for subscription on Wednesday. The grey market premium soared as investors across different categories poured in thier bids which led to the issue getting fully subscribed on the opening day.

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

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.

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

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.

Of the 10,67,73,244 shares on offer, 5,80,86,735 shares are reserved for Qualified Institutional Buyers, 2,90,43,367 are for Non Institutional Investors, 1,93,62,244 are for retail investors and 2,80,898 are for the employee reserved category.

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

The share allotment status for Urban Company IPO is proposed to be finalised on September 15. The company will transfer shares to the demat accounts of successful bidders on September16 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 September 17.

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.