Urban Company IPO opens September 10; investors eye valuations amid 27% GMP. Check all details here

Urban Company’s Rs 1,900 crore initial public offering (IPO) is set to open for subscription on Wednesday, September 10. Ahead of the launch, the IPO is seeing strong grey market interest, trading at a premium of 26.7% over the upper end of the price band of Rs 103 per share.

The IPO comprises a fresh issue of Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore by existing investors. The subscription window will remain open for three days, closing on September 12, with the price band fixed at Rs 98–103 per share.

Urban Company IPO GMP Today

Urban Company’s IPO is seeing strong grey market demand, with shares trading at a GMP of Rs 27.50, 26.7% above the upper price band of Rs 103, indicating a potential listing around Rs 130.50.

GMP reflects informal market sentiment and does not guarantee listing price or returns; investors should weigh it alongside other factors before investing.

Urban Company IPO: Strong GMP, But Valuation Concerns Loom

While the grey market premium (GMP) of Rs 27.50 indicates strong listing interest in Urban Company’s upcoming Rs 1,900 crore IPO, analysts are flagging concerns over the company’s steep valuations. The IPO is priced at nearly 12 times its sales, placing it alongside global consumer-tech platforms but at a significant premium compared to many domestic peers.

“At nearly 12x sales, Urban Company’s valuation looks stretched. There may be some listing gains, but in the short term, it doesn’t leave much value on the table. It’s more suited for aggressive long-term investors,” said Abhishek Jain, Head of Research at Arihant Capital Markets.

Urban Company IPO Details

The Rs 1,900 crore IPO comprises a fresh issue of Rs 472 crore and an offer-for-sale (OFS) of Rs 1,428 crore by existing shareholders. The price band has been set at Rs 98-103 per share, implying a post-issue valuation between Rs 14,100 crore and Rs 14,800 crore.

Retail investors can bid for a minimum lot of 145 shares, amounting to an investment of approximately Rs 14,935 at the lower end of the price band. Employees applying through the reserved quota will receive a discount of Rs 9 per share.

The IPO opens for subscription on September 10, with allotment expected on September 15. Shares are scheduled to list on BSE and NSE on September 17.

A Rare Tech-Enabled Services Play

Launched in 2014 as UrbanClap, Urban Company has evolved into a comprehensive platform for at-home services, covering categories such as cleaning, beauty, pest control, appliance repair, and products like water purifiers and smart locks under its in-house Native brand. Since its inception, the company has completed over 97 million service orders across India.

Urban Company’s scale, strong brand recognition, and focus on improving service partner earnings, reported to be 15–20% higher than other gig platforms, according to Redseer, have helped cement its position as a category leader in the tech-enabled services space.

What should investors do?

Urban Company’s IPO is attracting significant attention as both a major consumer-tech offering and one of the largest listings of FY26. However, much of the initial enthusiasm appears to be already priced in. While the grey market premium points to a strong debut, the company’s long-term returns will ultimately depend on its ability to drive profitability and sustain growth.

For retail investors, this may be a case of balancing expectations, experts say. There could be some immediate gains on listing day, but those seeking a larger upside may need to hold patiently, given the rich valuations.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)