Urban Company Ltd. will list on the stock market on Wednesday, Sept. 17, after its initial public offering of Rs 1,900 crore attracted bids worth Rs 1.13 lakh crore.
The public issue was subscribed to 109 times on its third and final day. The IPO received bids for 11,06,44,73,965 shares against 10,67,73,244 shares on offer.
The bids were led by institutional investors (147 times), followed by non-institutional investors (78 times), retail investors (41 times), and employees (43 times).
The Urban Company IPO contained a fresh issue of Rs 472 crore and an offer for sale of Rs 1,428 crore. The company has proposed to utilise the IPO funds for new technology development and cloud infrastructure, marketing activities and general corporate purposes.
The significant oversubscription reflects strong investor confidence in the online home and beauty services sector, as the company noted a gradual recovery in its profitability.
Improving Financials
Urban Company has improved its financial performance. The company posted a net profit of Rs 240 crore in the financial year 2005, after losses in the two preceding years.
Revenue rose to Rs 1,144 crore from Rs 828 crore in FY24.
On an operating level, Urban Company's Ebitda margin turned positive.
Urban Company, previously known as UrbanClap, has a business model built around gig workers, barbers, electricians, beauticians, and technicians. In the June 2025 quarter, the company reported 54,347 average monthly active service professionals, up from 50,992 in June 2024.
The company has operated without serious competition for nearly a decade, unlike quick commerce (Blinkit, Instamart, Zepto), fintech (Paytm, PhonePe, BharatPe), or e-grocery (BigBasket and Tata Neu). Notably, the company has no listed peers.
Institutional Interest
In its pre-IPO anchor round, Urban Company raised Rs 854 crore from institutional investors. These included Goldman Sachs, SBI Life Insurance, Nomura, Aditya Birla Sun Life, ICICI Prudential Life Insurance, Bajaj Allianz, Florida Retirement System, UTI, Government Pension Fund Global, Helios Mutual Fund, and Citigroup Global.
Out of the total anchor allocation, shares were allocated to 13 mutual funds through a total of 29 schemes. These include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund and Nippon Life India Mutual Fund.
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