Home services marketplace Urban Company had a dream debut on domestic bourses on Wednesday, exceeding Street expectations, after its ₹1,900 crore initial public offering (IPO) received a record-breaking response from investors.

The shares of Urban Company settled 64% higher on the first day of trading, with its market capitalisation (m-cap) climbing to ₹24,266.74 crore. The stock ended at ₹169 apiece on the NSE against the IPO price of ₹103, making investors richer by ₹9,477 crore.

Early in the day, Urban Company shares listed at ₹162.5 on the NSE, a 57.5% premium over the issue price, while they debuted at ₹161 per share, up 56.3% over the IPO price. Post listing, the share price gained as much as 74% to ₹179 on the BSE and NSE.

The listing was better than D-Street expectations, as the stock was trading at at premium of ₹51 in the grey market, indicating a listing price of around ₹154 per share, up 49.5% over the IPO price.

“Strong listing was above our expectations; despite 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,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

He recommended allotted investors, who can take near term risk, to ‘HOLD’ the stock from a long-term investment perspective, keeping in mind the inherent market risks. For non-allotted investors, he suggested a ‘Wait and Watch’ approach to assess any post-listing dip as a potential entry point.

Shivani Nyati, Head of Wealth at Swastika Investmart, also advised investors to consider book partial profit and hold the rest for long-term gains with stop loss of ₹120.

Best IPO debut in 2025

This marks the best mainboard listing of 2025, breaking the record set by Aditya Infotech, which ended 60.74% higher over its IPO price on the first day of trading. Quadrant Future Tek ranks third with a listing gain of 53.1%, followed by GNG Electronics and Stallion India, which rose 40.67% and 40%, respectively, on the first day of trading.

Among others, Ellenbarrie Industrial, Globe Civil Projects, Sri Lotus Developers, and Regaal Resources were among the top 10 performers in terms of listing-day gains, delivering returns in the range of 30-40%.

The Urban Company IPO, which was open for subscription between September 10 and 12, emerged as the most subscribed public issue in India this year, receiving bids nearly 104 times the shares on offer. The company surpassed Aditya Infotech, the manufacturer of video security and surveillance products under the ‘CP Plus’ brand, whose IPO was subscribed 100.7 times. The issue garnered bids worth over ₹1.14 lakh crore and attracted around 44.8 lakh applications.

The IPO comprised a fresh issue of 4.58 crore shares worth ₹472 crore, along with an offer for sale (OFS) of 13.86 crore shares by existing shareholders, totaling ₹1,428 crore. Ahead of the public offering, Urban Company raised ₹854 crore from anchor investors through the allotment of 8.29 crore equity shares at ₹103 each.

The company intends to use fresh equity capital primarily for growth and expansion initiatives. Around ₹190 crore is earmarked for technology development and cloud infrastructure, ₹75 crore for office lease payments, and ₹90 crore for marketing activities, with the balance allocated for general corporate purposes.

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