Urban Company’s Rs 1,900 crore IPO to open on September 10; company sets price band at Rs 98-103

Urban Company, the app-based marketplace for beauty and home services, has set the price band for its upcoming initial public offering (IPO) at Rs 98 to Rs 103 per share.

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The offering, which opens for subscription on September 10 and closes on September 12, seeks to raise Rs 1,900 crore through a combination of fresh equity issuance and an offer for sale (OFS) by existing shareholders. Anchor investors will be able to place bids on September 9.

The issue comprises a fresh sale of shares worth Rs 472 crore and an OFS of Rs 1,428 crore. At the upper end of the band, the company’s implied post-issue market capitalisation is estimated between Rs 14,095 crore and Rs 14,790 crore. The face value of each equity share is Rs 1, and bids can be placed in lots of 145 shares, translating into a minimum investment of about Rs 14,935 for retail participants.

Among the selling shareholders are Accel India IV (Mauritius), Bessemer India Capital Holdings II, Elevation Capital V, Internet Fund V, and VYC11. Proceeds from the fresh issue will be deployed toward technology and cloud infrastructure (Rs 190 crore), lease payments (Rs 75 crore), marketing activities (Rs 90 crore), and general corporate purposes.

The allocation structure reserves 75% of the offering, or about Rs 1,423 crore, for Qualified Institutional Buyers (QIBs). Non-Institutional Investors (NIIs) will be allotted 15%, or Rs 285 crore, further split between high-value bids of Rs 2 lakh–Rs 10 lakh and those below Rs 2 lakh. Retail investors will receive 10% of the issue, equal to Rs 190 crore, while employees are allotted up to Rs 2.5 crore worth of shares at a Rs 9 discount on the final price.

Urban Company, originally launched as UrbanClap in 2014, operates in 51 cities across India, the United Arab Emirates, and Singapore. Its platform hosts more than 54,000 active monthly professionals offering services ranging from cleaning, pest control, and appliance repair to beauty, massage, painting, and home décor. The company has also introduced home solutions under its Native brand, including water purifiers and electronic locks.

Financially, the firm reported revenue of Rs 367.26 crore and profit after tax (PAT) of Rs 6.93 crore in the quarter ended June 30, 2025. For FY25, revenue rose 38% year-on-year to Rs 1,144.46 crore, while PAT stood at Rs 239.76 crore, a reversal from a loss of Rs 92.77 crore in FY24.

The book-running lead managers are Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India) Securities, and JM Financial. MUFG Intime India is the registrar to the issue.

The basis of allotment will be finalised around September 15, with shares credited to demat accounts by September 16. The stock is scheduled to debut on both the National Stock Exchange and the Bombay Stock Exchange on September 17.