Urban Company IPO GMP News: Check Day 1 subscription numbers, latest GMP; should you apply?

QIB – 1.16 times

NII – 4.46 times

Retail – 19.53 times

Employee Reserved – 2.34 times

Overall – 5.33 times

QIB – 0.01 times

NII – 2.70 times

Retail – 2.83 times

Employee Reserved – 8.97 times

Overall – 2.01 times

QIB – 1.31 times

NII – 4.16 times

Retail – 7 times

Employee Reserved – 5.79 times

Overall – 3.13 times

• QIB – 1.30 times
• NII – 3.93 times
• Retail – 6.72 times
• Employee Reserved – 5.49 times
• Overall – 3 times

Home services marketplace player Urban Company has 'broadly' reached a breakeven stage, and the company will now be focusing on expanding margins, Chairman and CEO Abhiraj Singh Bhal told Moneycontrol during an interaction, adding that newer verticals will need upfront investments.

While the CEO refrained from any forward guidance, he emphasised the size of the opportunity is over Rs 5 lakh crore, with less than 1% currently organised. “We believe it’s still Day One for us,” he said, underlining the ambition to continue scaling at a healthy pace. (Read more)

We believe the company is well-positioned to capitalize on the growth driven by expanding consumer segments and shifting preferences towards higher spends on experiences. We assign a 'SUBSCRIBE' rating to its initial issue, said Deven Choksey.

"At the upper price band company is valuing at P/E of 65.7x to its FY25 earnings with P/S of 12.9 and market cap of Rs 1,47,895 million post issue of equity shares. We believe that the IPO is fully priced and recommend a “Subscribe Long Term” rating to the IPO," says Anand Rathi.

The initial public offering of Shringar House of Mangalsutra opened for public bidding on September 10 (Wednesday). The Rs 400.95-crore issue has been fully subscribed on Day 1 so far.

The IPO received bids for nearly 1.71 crore shares, as against the offer size of 1.70 crore shares, according to data on NSE at 1 pm. Employees have subscribed their reserved portion nearly 5 times. Retail investors and Non Institutional Investors (NII) booked the portions kept for them 1.5 times and 1.1 times respectively. Qualified Institutional Buyers (QIB) are yet to make any substantial bid for the IPO.

Urban Company IPO witnessed robust subscription on the first day of share sale in the primary market. The issue was fully subscribed withing two hours on Day 1 of the issue. The Rs 1,900-crore IPO got bids for 10.81-crore shares against 10.67-crore shares on offer, as per NSE data till 12 p.m. The investors can bid for one lot of 145 shares and then in multiples of 145 thereafter.

The portion for non-institutional investors garnered 1.29 times subscription. The category for retail individual investors got subscribed 3.02 times and qualified institutional buyers part received 20 percent.

Master Capital Services in its IPO noted advised investors to subscribe to the issue for the long term. "The Indian Mangalsutra market reached Rs. 178 billion, showing a y-o-y growth of 16%. By CY32, the Indian Mangalsutra market is expected to grow at 5.8% y-o-y to Rs. 303 billion. Mangalsutra is a vital part of Indian weddings. Its ritualistic value makes it an essential item for weddings, thereby maintaining a steady market demand… In the long term the market for Mangalsutra is expected to remain healthy. Shrinagar House of Mangalsutra Limited is well-positioned to capture this expected growth by establishing a supply chain network to reach untapped geographical regions. The company is strengthening its relationships with existing clients, participating in their future expansions, and continuing to invest in marketing and brand-building initiatives," it said.

Shringar House of Mangalsutra, which makes and designs mangalsutras for several top jewellery brands, launched its IPO to raise around Rs 401 crore through an entirely fresh issue of 2.43 crore equity shares at a price band of Rs 155-165 per share.

Investors can bid for a minimum of 90 shares, requiring an investment of Rs 14,850 at the upper price band, and in multiples thereafter. The allotments will likely be finalized on September 15, and the shares are scheduled to debut on stock markets on September 17.

Dev Accelerator IPO gets fully subscribed within one hour of opening:

• QIB – 0.95 times
• NII – 0.58 times
• Retail – 4.06 times
• Employee Reserved – 0.62 times
• Overall – 1.38 times

Shringar House Of Mangalsutra IPO Subscribed 0.35 times at 10:54 AM (Day 1)

• QIB – 0.00 times
• NII - 0.37 times
• Retail – 0.53 times
• Employee Reserved - 2.26 times
• Overall – 0.35 times

Urban Company IPO Subscribed 0.57 times at 10:51 AM (Day 1)

• QIB – 0.20 times
• NII - 0.63 times
• Retail – 1.56 times
• Employee Reserved - 1.59 times
• Overall – 0.57 times

"With FY25 revenues crossing ₹1,800 crore and the firm going EBITDA positive, this issue is unlike previous startup offerings that had poor profitability woes. Retail buyers are keenly monitoring its 50 million-plus consumers and growing international presence. If momentum to list is maintained, Urban Company may create a new standard for technology-driven service IPOs in India—filling the gap between potential growth and financial viability," said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.

"Financially, the company has shown strong traction. Revenue from operations rose to ₹1,144.5 crore in FY25, up from ₹828 crore in FY24 and ₹636.6 crore in FY23, reflecting steady expansion in customer base and service penetration. Profit before tax for FY25 stood at ₹205.6 crore, with adjusted EBITDA turning decisively positive, marking a shift from losses in earlier years. On valuation, the IPO implies a price-to-earnings multiple of 59.7–62.4x FY25 EPS, price-to-book of 8.27x, and RoNW of 13.35%, translating to a price-to-sales ratio of about 12.9x.

Compared with peers in India’s consumer internet space, Urban Company’s valuations sit between Zomato and Nykaa, both trading at premium multiples, and Just Dial, which trades at lower levels. While growth visibility is strong, risks remain in competitive intensity, high customer acquisition costs, dependence on gig workers, and potential regulatory tightening on platform-based employment. Still, its improving profitability metrics, increasing scale, and brand recall in premium urban households position Urban Company as a differentiated consumer-tech play. For investors seeking exposure to India’s growing services economy, this IPO presents a high-growth, albeit high-valuation, opportunity," said Harshal Dasani, Business Head, INVasset PMS.

"Urban Co. is tapping into a massive, underpenetrated US$60 billion home services market with strong technology, brand and first-mover advantages. The company has shown encouraging signs of turnaround, but the FY25 profit was largely aided by tax credits and core profitability remains thin. At a P/E of over 60x, the issue looks aggressively priced, especially with most of the proceeds going to existing shareholders through the OFS.

For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations," said Gaurav Garg, Lemonn Markets Desk.

Urban Company, the online marketplace for home and beauty services, has garnered healthy interest from institutional investors who acquired Rs 853.87 crore worth shares via anchor book on September 9, a day prior to the IPO opening.

Urban Company in its filing to exchanges on Tuesday said it has finalised allocation of 8,29,00,485 equity shares to anchor investors at Rs 103 per share.

Marquee global investors like Citigroup Global, Goldman Sachs, Government of Singapore, Ashoka Whiteoak, Government Pension Fund Global, Nomura, Amundi Funds, Florida Retirement System, Steadview Capital, and Steinberg India became shareholders in the Gurugram-based company by investing via anchor book.

Ahead of listing, the unlisted shares of the company were trading at Rs 139.5 apiece, according to data on Investorgain. This implies a grey market premium (GMP) of a more than 35 percent from the IPO price.

The Rs 1,900-crore IPO will remain open for public bidding from September 10 to September 12 at a price band of Rs 98-103 per share. The issue comprises a fresh issue of Rs 472 crore shares and an offer-for-sale (OFS) worth Rs 1,428 crore.

Investors can bid for a minimum of 145 shares, requiring an investment of Rs 14,210 at the lower price band, and in multiples thereafter. The allotments will likely be finalized by September 15, and the shares of the company are scheduled to debut on stock markets on September 17.