Urban Company IPO closes with 104x subscription; receives bids for 1,106.46 crore shares against 10.68 crore on offer

Gurugram-based at-home services platform Urban Company closed its initial public offering (IPO) on Friday with overwhelming investor demand, attracting bids for 1,106.46 crore shares against 10.68 crore shares on offer, an overall subscription of 103.6 times.

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The three-day book build issue, which opened on September 10, comprised a fresh issue of Rs 472 crore (4.58 crore shares) and an offer for sale (OFS) worth Rs 1,428 crore (13.86 crore shares) from existing investors, including Accel, Elevation Capital, Tiger Global, Vy Capital, and Bessemer Venture Partners.

Qualified institutional buyers (QIBs) drove the frenzy, subscribing 140.2 times, while non-institutional investors bid nearly 74 times, and retail investors 39.2 times. The employee portion was subscribed 36.7 times.

Ahead of the IPO, Urban Company had raised Rs 854 crore from anchor investors such as GIC of Singapore, Fidelity, and Norges Bank, and also executed a Rs 500 crore secondary sale, with SBI Mutual Fund and Permira among the buyers.

Priced at Rs 98-103 per share, the IPO values Urban Company at about 14,790 crore ($1.7 billion). At the upper end, a retail investor’s minimum application of 145 shares required Rs 14,935, while high-net-worth individuals faced commitments upwards of Rs 2.09 lakh for the sNII segment and Rs 10 lakh for the bNII category.

Founded in 2014, the company operates across beauty and wellness services, including salon, spa, and laser hair reduction, and home maintenance services such as plumbing, electrical, carpentry, cleaning, pest control, and appliance repairs. It reported a 38% rise in operating revenue to Rs 1,144 crore in FY25, while swinging to a net profit of Rs 240 crore from a Rs 93 crore loss the year before.

Urban Company shares are expected to list on the BSE and NSE on September 17, following allotment on September 15.