Fri Sep 12 06:10:00 UTC 2025: **Summary:**
The IPO of Urban Company, an app-based beauty and home services platform, was fully subscribed within hours of opening on September 10, 2025. By the end of the day, it was oversubscribed 3.13 times. The IPO consists of a fresh issue of shares worth ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors. The price band for the IPO is ₹98-103 per share, valuing the company at ₹14,790 crore at the upper end. The company plans to use the funds for technology development, cloud infrastructure, marketing, and general corporate purposes. The IPO will remain open until September 12.
**News Article:**
**Urban Company IPO Oversubscribed on Day One, Signals Strong Investor Confidence**
**New Delhi, September 10, 2025:** The initial public offering (IPO) of Urban Company Ltd, a leading app-based platform for beauty and home services, witnessed a robust start, achieving full subscription within hours of opening today. By the end of the trading day, the IPO was oversubscribed by 3.13 times, signaling strong investor confidence in the company’s growth prospects.
According to data from the National Stock Exchange (NSE), the IPO received bids for 33,37,87,825 shares against the 10,67,73,244 shares on offer. Retail Individual Investors (RIIs) showed particularly strong interest, subscribing 7 times their allotted portion. Non-institutional investors subscribed 4.16 times, while Qualified Institutional Buyers (QIBs) subscribed 1.31 times.
The Gurugram-based Urban Company aims to raise ₹1,900 crore through this IPO, with a price band of ₹98-103 per share. The offering comprises a fresh issue of ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors, including Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, and VYC11 Ltd.
The company plans to utilize the funds raised from the fresh issue to bolster its technological infrastructure, invest in cloud computing, lease new office spaces, and enhance its marketing efforts.
Urban Company operates a technology-driven marketplace connecting consumers with qualified professionals for a wide range of home and beauty services, including cleaning, pest control, electrical work, plumbing, and beauty treatments. Besides India, the company also has a presence in the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia.
The IPO, which opened today, will remain open for subscription until September 12. Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial are acting as the book-running lead managers for the issue. The success of the IPO on its first day highlights the growing investor appetite for tech-driven companies and underscores the increasing demand for Urban Company’s services. At the upper end of the price band, the company’s valuation is pegged at ₹14,790 crore.
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