Urban Company IPO Excites Investors with Rs 32 GMP, Signaling 31% Listing Premium

Urban Company, the Gurugram-based technology-driven home and beauty services marketplace, is gearing up for its much-anticipated IPO opening on September 10, 2025, with the issue set to close on September 12. The company aims to raise a total of Rs 1,900 crore through a combination of fresh issuance and an offer-for-sale (OFS) from existing shareholders.

The IPO price band has been fixed between Rs 98 and Rs 103 per share. Investors are closely watching the grey market premium (GMP), which indicates informal market demand and potential listing gains. As of the latest updates, Urban Company shares are trading at a GMP of Rs 28-32 per share, reflecting a 27-31% premium over the upper price band. This suggests a possible listing price around Rs 130-135, signaling strong investor confidence in the company’s prospects.

The IPO comprises a fresh issue worth Rs 472 crore aimed at funding the company’s growth initiatives, alongside an OFS of Rs 1,428 crore by shareholders including Accel India, Elevation Capital, and Bessemer India Capital Holdings. The total valuation of Urban Company at the upper price band stands at approximately Rs 14,790 crore.

Urban Company reported profitability in FY25, posting a net profit of Rs 239.8 crore, which adds a positive note to investor sentiment amid ongoing valuation scrutiny. However, analysts caution that the IPO is priced at nearly 12 times its sales, a steep valuation compared to domestic peers, which might make it more suitable for long-term investors with an appetite for growth in the consumer-tech space.

The IPO subscription window will open at 10 am on September 10 and close by 5 pm on September 12, with investors required to apply through their demat accounts via the ASBA process. The basis of allotment is expected to be finalised on September 15, with shares credited to investors’ demat accounts, and refunds processed on September 16. Urban Company is slated to debut on the BSE and NSE on September 17.

With strong grey market demand, a credible profitability track record, and a sizable issue size, Urban Company’s IPO is among the most closely watched tech listings of 2025. Investors are advised to consider GMP trends alongside the company’s valuation and growth prospects before making investment decisions.