Urban Company IPO Day 2: Problem is subscribed to more than 300%, GMP jumps 34%; Do you have to subscribe?

RS 1,900 Crore IPO from Urban Company has seen a strong question if it starts its second day offer day on Thursday. The issue is currently being traded against a Gray Market Premium (GMP) of 34%, which reflects a positive investor sentiment prior to the list. The problem has received a general subscription from 3.13 times so far.

Urban Company IPO GMP today:

The Gray Market Premium (GMP) floated around RS 35, which reflects a premium of 33.98% compared to the upper price tire of the IPO of RS 103. This indicates robust investment interest and implies a potential listing price close to RS 138. GMP is the unofficial market to be the unofficial market to be the GMPSe -advocate samples. Gray market for their official official in the Gray Market for their official at the Stockbeurs.

Urban company IPO subscription status:

At the end of day 1, the IPO of the urban company was subscribed to total 3.13 times.

Here is a breakdown by the Investor category: Retail Individual Investors (RIIS) showed a strong enthusiasm and subscribed to 7 times the 1.93 Crore shares that have been assigned to them. Non-institutional investors (NIIS) subscribed 4.16 times their reserved quota of 2.90 Crore shares.

Qualified institutional buyers (QIBs), including large entities such as investment funds and insurance companies, subscribed to 1.31 times their 5.80 Crore sharing allocation. This early subscription trend reflects a healthy importance of retail and non-institutional investors, while institutional participation is still developing.

Urban Company IPO -Details

The IPO is priced between RS 98 and RS 103 per share and consists of a new issue of RS 472 Crore, together with an offer for sale (OFS) from RS 1,428 Crore by existing shareholders. The subscription window is open until 12 September, with the stock planned to mention on the BSE and NSE on 17 September.

Company overview

Urban Company, founded in 2014, is a platform that connects customers with trained professionals in a wide range of services, including cleaning, beauty, repair of devices, pest control, plumbing, electric work and well -being. In addition to services, the company offers products such as water purifiers and electronic door locks under the ‘Native’ brand, and recently launched Instahelp, a micro-market initiative that offers daily household help.

The company is active in 47 cities in India and is internationally expanded via joint ventures in the VAE, Singapore and Saudi Arabia.

Since the launch, Urban Company has served more than 14.5 million unique consumers, added with 46% of them in the past three years. On the supply side, the platform had more than 54,000 active service professionals from June 2025, many of whom earn 30-40% higher incomes than their counterparts in the unorganized sector, according to Redseerder.

Finance and ratings

Urban Company reported income from RS 1,144.5 Crore in FY25, as a result of a robust growth of 38% on an annual basis. The company became profitable during the year and booked a net profit of RS 240 Crore, mainly driven by a postponed tax credit of RS 211 Crore. Excluding this one -off profit, the profit before taxes was on RS 28 Crore. The company also reported a modest but remarkable profit in the quarter of June 2025.

At the top of the IPO prize band, Urban Company is appreciated at approximately RS 14,800 Crore, which implies a price-win ratio (p/e) of 65.7x based on FY25 income and a price-to-sales (P/s) ratio of 12.9X. However, analysts note that the IPO seems to be completely priced, which indicates a limited space for a substantial upward upward lead.

Strong points

Urban Company benefits from strong brand recognition, a trusted platform and high customer loyalty. The hyperlocal, micro-market strategy makes faster service supply and optimum implementation of service professionals possible. To maintain consistent service quality, the company offers internal training and uses standardized consumables. In addition, his technology platform uses AI and Machine Learning to efficiently match demand with demand.

Risks

Urban Company has experienced historical losses and negative cash flows. The profitability of it is currently narrow when excluding tax credits and depends considerably on the growth of newer companies such as Native and Instahelp.

The company is confronted with intense competition from both established offline providers and smaller online platforms. In addition, sales can be influenced if customers and service professionals can choose to work outside the platform. Regulatory uncertainties surrounding the classification of gig employees and challenges with regard to international expansion will further contribute to the company’s risk profile.

Do you have to subscribe?

Brokers generally recommend subscribing to the IPO of Urban Company with a long -term front view. Although valuations may seem raised in the short term, the leadership of the company in the largely unorganized RS 60 billion Home Services market, combined with the potential to extend to new services segments, offers considerable structural growth opportunities.

Anand Rathi suggests: “Conservative investors could prefer to wait for more favorable access points, but those who have faith in the formalization of the Indian home service sector should consider participating in this IPO.”

Urban Company Limited (UCL) is suitable for urban consumers in a wide range of household services in a market that is dominated by unorganized players. Between FY23 and FY25 it is expected that UCL’s Net Transaction Value (NTV) and income is expected to grow with a compound annual growth rate (CAGR) of 25.5% and 34.1% respectively. The profitability of the company improves, with EBITDA expected to break even through FY26. At the top of the price band, UCL is appreciated on a price-to-sales after the edition (p/s) several of 12.9x. SBI Securities Research recommends subscribing to the IPO with a focus on long -term investments.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)