Urban Company IPO Subscribed 58x; Raises ₹1,900 Crore Amid Strong Investor Demand The INR 1,900-crore issue drew bids for 6,22.05 crore shares against an offer of 10.67 crore shares, according to NSE data. The portion reserved for non-institutional investors was subscribed 65.43 times, while Qualified Institutional Buyers (QIBs) bid 62.99 times.
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The initial public offering (IPO) of app-based home services platform Urban Company Ltd witnessed strong demand across investor categories, with subscriptions reaching 58.26 times on the final day of bidding on Friday.
The INR 1,900-crore issue drew bids for 6,22.05 crore shares against an offer of 10.67 crore shares, according to NSE data. The portion reserved for non-institutional investors was subscribed 65.43 times, while Qualified Institutional Buyers (QIBs) bid 62.99 times. Retail Individual Investors (RIIs) also showed robust participation, with 33.76 times subscription.
Earlier this week, the Gurugram-headquartered firm raised INR 854 crore from anchor investors, securing commitments from marquee institutions. The IPO was priced at INR 98-103 per share, valuing Urban Company at nearly INR 14,790 crore at the upper band. The issue also comprises a fresh issue of INR 47 crore and an offer for sale (OFS) worth INR 1,428 crore, with existing investors including Accel India, Elevation Capital, Bessemer India, Internet Fund V, and VYC11 paring their stakes.
According to the company, proceeds from the fresh issue are earmarked for technology and cloud infrastructure development, office lease payments, marketing, and general corporate purposes.
Founded in 2014, Urban Company has become one of India's largest tech-enabled, full-stack services marketplaces, catering to high-frequency, urban lifestyle needs. Its platform connects vetted service professionals to customers for home repairs, cleaning, pest control, painting, plumbing, electrical services, appliance repair, as well as grooming, skincare, and spa therapies. The company has expanded beyond India to the UAE, Singapore, and Saudi Arabia, signaling ambitions to scale in international markets where organized home services are still nascent.
Industry analysts note that the company's growth has been fueled by India's rising middle class, increasing demand for professionalized household services, and the adoption of digital platforms post-COVID-19. Urban Company's model, focusing on training and standardizing its service partners, helps it stand out in a highly fragmented industry. However, profitability remains a challenge, with heavy investments in customer acquisition, training, and technology infrastructure.
The IPO also comes against the backdrop of a reviving primary market in India, with regulators fast-tracking approvals and strong liquidity flows driving subscription levels. The Urban Company listing is closely watched as a bellwether for consumer-tech IPOs in 2025, following a spate of tech unicorn listings over the past three years.
Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), and JM Financial are the book-running lead managers to the issue.
