Urban Company sets IPO price band at ₹98–103, aims to raise ₹1,900 cr at ₹14,790 cr valuation

Urban Company on Wednesday announced its price band for its upcoming IPO at ₹98–103 per share, aiming to raise ₹1,900 crore through a combination of fresh issue and offer for sale (OFS). 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 comprises 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. At the upper end of the price band, the Gurugram-based home services marketplace would command a valuation of ₹14,790 crore.

Under the OFS, existing investors Accel India IV (Mauritius) Ltd, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, VYC11 Ltd, and Elevation Capital V Ltd will sell a portion of their stake in Urban Company.

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 IPO will open for subscription on September 10, 2025, and close on September 12, 2025, with allotment likely to be finalised on September 15. The shares are expected to list on the BSE and the NSE on September 17, 2025.

The lot size is fixed at 145 shares and in multiples thereafter, while the minimum investment for a retail investor is ₹14,935 for one lot. For small non-institutional investors (sNII), the minimum bid is 14 lots (2,030 shares) worth ₹2,09,090, while large or big non-institutional investors (bNII) must apply for at least 67 lots (9,715 shares), amounting to ₹10,00,645.

According to the DRHP filed with Sebi, up to 75% of the IPO has been reserved for qualified institutional buyers (QIBs), while the quota for non-institutional investors (NIIs) and retail investors has been fixed at 15% and 10%, respectively.

Urban Company reported strong financial performance in FY25, with revenue rising 36% year-on-year to ₹1,260.68 crore, compared to ₹927.99 crore in FY24 and ₹726.24 crore in FY23. Profit after tax (PAT) surged to ₹239.77 crore in FY25, after reporting net losses of ₹92.77 crore in FY24 and ₹312.48 crore in FY23.

As of March 31, 2025, the company’s assets stood at ₹2,200.64 crore, up from ₹1,638.65 crore a year earlier, while net worth improved to ₹1,781.28 crore. Reserves and surplus also increased to ₹2,646.12 crore in FY25.

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