Urban Company IPO: Home services firm raises ₹854 crore from anchor investors; issue to open today

A day ahead of the opening of its initial public offering (IPO), home services firm Urban Company on Tuesday raised ₹854 crore from anchor investors. The company has allocated 8.29 crore equity shares with a face value of ₹1 apiece to the anchor investors at an issue price of ₹103 per share, according to exchange data.

The anchor book saw participation from 13 mutual funds through a total of 29 schemes. Nomura, CitiGroup Global, and Goldman Sachs, Florida Retirement System, UTI, Government Pension Fund Global, Aditya Birla Sun Life, Helios Mutual Fund, ICICI Prudential Life Insurance, SBI Life Insurance, and Bajaj Allianz, were among the marquee investors who invested in the company's anchor round.

Meanwhile, domestic mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon Life India Mutual Fund, UTI Mutual Fund, and Sundaram Mutual Fund also participated in the IPO.

Ahead of its IPO, Urban Company shares were trading at a strong premium in the grey market. The shares are commanding a grey market premium (GMP) of ₹36.5, indicating a potential listing price of around ₹139.50, up 35.44% over the issue price.

The three-day IPO of Urban Company will open for subscription today, looking to raise ₹1,900 crore at a price band of ₹98–103 per share. At the upper end of the price band, the market value of the Gurugram-based home services marketplace is pegged at around ₹14,790 crore.

The Urban Company IPO is a mix of a fresh issue of 4.58 crore shares worth ₹472 crore and an OFS of 13.86 crore shares aggregating ₹1,428 crore by existing shareholders.

Out of the fresh equity proceeds, Urban Company plans to utilise capital mainly for growth and expansion initiatives. Around ₹190 crore has been earmarked for new technology development and cloud infrastructure, while ₹75 crore will go towards lease payments for offices. The company also intends to spend ₹90 crore on marketing activities, with the balance set aside for general corporate purposes.

The lot size for the IPO is 145 shares and in multiples thereafter, while the minimum investment for a retail investor is ₹14,935 for one lot. The company has reserved 75% of the IPO for qualified institutional buyers (QIBs), while the quota for non-institutional investors (NIIs) and retail investors has been fixed at 15% and 10%, respectively.

The allotment of Urban Company shares are expected to be finalised on September 15, while the shares are slated to be listed on the BSE and the NSE on September 17, 2025.

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