After garnering an overwhelming response for its ₹1,900-crore initial public offering (IPO), the shares of Urban Company are expected to make a strong debut on the domestic bourses. The IPO of the country’s largest home services marketplace is pegged to deliver strong listing gains of around 40-50%, supported by high subscription levels and buoyant market sentiment, according to an analyst.

“Given the high subscription levels and current positive market sentiment, we anticipate a strong listing gain in the range of 40-50% or higher, depending on market trends on the listing day,” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities.

“However, beyond the immediate listing pop, Urban Company presents a compelling long-term structural story and can serve as a proxy for the growing demand in the home services segment across its key geographies,” he added.

The allotment of Urban Company shares is expected to be finalised on September 15, while the stock is slated to list on the BSE and NSE on September 17, 2025. Ahead of listing, Urban Company has created a buzz in the grey market, with its shares commanding a premium of ₹52, implying a potential listing price of around ₹155, up 50.49% over the issue price. The Urban Company IPO GMP touched its peak of ₹68.5 on September 14, 2025.

IPO tops 2025 subscription charts 

The Urban Company IPO, which opened for bidding between September 10–12, was subscribed nearly 104 times, making it the most subscribed public issue in India this year. It surpassed Aditya Infotech, the manufacturer of video security and surveillance products under the ‘CP Plus’ brand, whose IPO was subscribed 100.7 times.

As per exchange data, the IPO secured bids worth over ₹1.14 lakh crore, with nearly 1,106.44 crore shares applied for against an offer size of 10.67 crore shares. The issue attracted around 44.8 lakh applications.

The public offer received a stellar response from all three segments of investors, led by qualified institutional buyers (QIBs), as the portion set aside for them was booked 140.20 times. The non-institutional investors (NII) category received 74.04 times bidding, while the retail investor quota was subscribed 39.25 times. The employee portion saw 36.79 times subscription.

As per the IPO document, the company had reserved 75% of the IPO for QIBs, while the quota for NIIs and retail investors was fixed at 15% and 10%, respectively.

“Despite being perceived as expensive from a valuation standpoint and entering the market amid a relatively muted environment, Urban Company’s IPO has witnessed strong investor demand. This was primarily led by QIBs (147x) and NIIs (77x), with retail participation also remaining healthy (41x) compared to other recent offerings,” said Tapse of Mehta Equities.

He added that the robust response is well-supported from a long-term investment perspective. “Urban Company is currently the only organised player in the tech-driven online home services marketplace, enjoying a leadership position across 51 cities in India, as well as in international markets like the UAE and Singapore. Its strong brand recall and first-mover advantage position it as a preferred service provider in a largely fragmented sector.”

The analyst recommended allotted investors to ‘Hold’ the stock from a long-term investment perspective, keeping in mind the inherent market risks. For non-allotted investors, a “wait and watch” approach is advisable to assess any post-listing dip as a potential entry point, he said.

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