Urban Company IPO GMP Hints At Strong Debut: Check Competitors, Strengths and Risks And Other Details From RHP

The initial public offering (IPO) of Urban Company is scheduled to open for bidding on September 10, 2025. Here are some key details related to the beauty and home-care service provider’s IPO ahead of the opening of the bidding window:

Urban Company IPO GMP

On September 9, shares of Urban Company were commanding a grey market premium (GMP) ranging between Rs 28 and Rs 35 according to websites which monitor the movement of unlisted shares. Given the premium of Rs 35 the stock is expected to make a strong debut, potentially listing at Rs 138 apiece, up by 33 per cent.

Urban Company IPO: Offer Size, Listing Date, Price Band

The issue size of Urban Company’s IPO aggregates to Rs 1,900 crore comprising an offer for sale (OFS) of 138.60 million shares worth Rs 1,428 and a fresh issue of 45.80 million shares amounting to Rs 472 crore.

The price has been fixed at Rs 98-103 per share. Retail individual investors (RIIs) can apply for the public issue by bidding for at least 1 lot consisting of 145 shares aggregating to a minimum investment of Rs 14,935. Small non-institutional investors (SNIIs) can apply for the IPO by bidding for a minimum of 2,030 shares or 14 lots which totals to a minimum investment of Rs 2,09,090.

The subscription window is slated to close on September 12 and the basis of allotment will be finalised on September 15. Once the share allotment status is decided, successful bidders will receive shares of Urban Company in their demat accounts on September 16. Shares of Urban Company will list on the BSE and NSE on September 17.

Urban Company: Key Financials

In the fiscal ended March 31, 2025 Urban Company’s total income stood at Rs 1,260.68 crore, up by more than 35 per cent compared to Rs 927.99 crore in the preceding fiscal. The profit-after-tax (PAT) of the service aggregator for the fiscal under review stood at Rs 239.77 crore compared to a net loss of Rs 92.77 crore in the preceding fiscal. Its net worth also increased by nearly 38 per cent to Rs 1,781.28 crore in the fiscal ending March 31, 2025 compared to Rs 1,292.64 crore in the financial year ending March 31, 2024.

Urban Company: Peers

Urban Company mentioned in its Red Herring Prospectus (RHP) that its offline competitors include unorganised local vendors and organised service providers like salon chains and original equipment manufacturers (OEMs) which offer repair services. The company disclosed that while it faces competition from other online platforms which offer similar services, the competitors are localised and focus on serving specific geographies or service categories.

Urban Company: Business Model

According to Urban Company’s RHP, it provides an app-based online services marketplace. The company provides services within the home care and beauty categories. Urban Company mentioned it is active in 51 cities located across India, the United Arab Emirates (UAE) and Singapore as of June 30, 2025. The company’s platform enables users to easily order services, such as home cleaning, pest control, electrical, and plumbing services, among others. The company also offers beauty related services, such as skincare, hair grooming and massage therapy. The company mentioned that the services are rendered by service professionals. The company has also diversified its business to launch its own water purifiers and electronic door locks under the brand name ‘Native’.

Urban Company IPO: Risks and Strengths

Here’s a look at some of the key risks related to Urban Company’s business according to the company’s RHP:

• Urban Company revealed in its RHP that it has incurred net losses and negative operating cash flows previously. The company added that its inability to generate revenue growth and increase cost-efficiency may affect future profitability.

• Also, inability to continue to provide a satisfactory experience to customers can adversely affect the company’s business and reputation.

• Urban Company said it faces intense competition from traditional offline players. This, along with the low penetration of online services across markets can result in reduced demand for services on its platform.

• The company mentioned that its business relies on the strength of its brands and reputation. As such, negative impact on the reputation or brand can materially and adversely affect the financial condition, cash flows and results of operations.

Here’s a look at some of the qualitative strengths

• Urban Company mentioned in its RHP that it is offers multi-category, hyperlocal, home and beauty services marketplace benefits from network effects

• Urban Company also claims to have an established brand which is trusted by consumers.

• The company claimed that it improves its quality of service professionals through in-house training and access to tools and consumables.

• It also has a robust technology platform which powers its service fulfilment and consumer growth.

Urban Company IPO: Objectives

Urban Company aims to use the money raised from the public issue for financing expenditure on new technology development and cloud infrastructure, lease payments for offices and other marketing activities. The money will also be used for funding Urban Company’s general corporate purposes.