The IPO of Urban Company, an app-based platform offering home and beauty services, is getting a great response from investors.
By 2 PM on the second day of bidding, the IPO was subscribed over 7.58 times.
This ₹1,900 crore issue was fully subscribed on the first day itself, receiving 3.13 times the bids on Wednesday.
Urban Company IPO Details
Total Issue Size: ₹1,900 crore
Fresh Issue: ₹458.3 crore
Offer for Sale (OFS): ₹1,386.4 crore
Opening Date: September 10
Closing Date: September 12
Price Band: ₹98 – ₹103 per share
Minimum Lot Size: 145 shares
What Do Experts Say?
Brokerages have mixed opinions on Urban Company’s IPO. While some suggest subscribing, others are more cautious.
Anand Rathi Shares & Stock Brokers recommends subscribing for long-term investment. They say the company has a strong network and trusted brand.
However, they also point out that the IPO is priced at 65.7 times FY25 earnings and 12.9 times sales, which makes it look fully valued.
BP Equities and Sushil Finance have both given a ‘Subscribe’ rating.
BP Equities cites the company’s strong leadership, improving financials, and good growth potential as reasons to invest.
Sushil Finance sees it as a chance to invest in India’s fast-growing gig economy.
On the other hand, ICICIDirect has given a ‘Neutral’ rating. They say Urban Company is unique in the home services space, but the valuation of 11.4 times FY25 EV/Sales is in line with other new-age tech companies.
The firm believes the company needs to improve how it uses its workforce to become more profitable in the long run.
What Is the Grey Market Premium (GMP)?
According to market watchers, Urban Company’s IPO has a current GMP of ₹39.
This suggests the stock may list at around ₹142 per share, which is 37.86% higher than the upper end of the IPO price band (₹103).
The GMP has been rising consistently over the past 10 days, pointing to strong investor interest and a possible bumper listing.
