- Offer terms (band, lots, timeline, split)
- Business snapshot & where growth comes from
- Financials & the profit caveat
- Valuation sense-check
- “Should I apply?” — 90-second checklist
- How to apply & quick links
The short
- Window: Sep 10–12, 2025. Tentative listing Sep 17 (T+3).
- Size & band: ₹1,900 cr at ₹98–₹103; lot 145 shares.
- Split: Fresh ₹472 cr + OFS ₹1,428 cr. Anchors took ₹854 cr at ₹103/sh.
- FY25 print: Revenue ~₹1,144 cr (+38% YoY); reported profit ~₹240 cr — buoyed by ~₹211 cr deferred tax credit; pre-tax profit ~₹28 cr.
Offer terms
Key details
Price band
₹98–₹103
Lot / Min invest
145 shares · ~₹14.2k–14.9k
Issue size
₹1,900 cr
Fresh / OFS
₹472 cr / ₹1,428 cr
Anchors
₹854 cr @ ₹103
Investor quota
QIB ≥75% · NII ≤15% · Retail ≤10%
Objects of the issue (fresh)
- New technology development & cloud infrastructure
- Lease rentals for office spaces
- Branding & marketing
- General corporate purposes
Business snapshot
Urban Company runs a managed services marketplace for home maintenance and beauty/wellness, plus a growing attach line in company-branded products (e.g., water purifiers, smart locks) that drive recurring servicing. International units (UAE, Singapore) are scaling from a small base.
Financials (₹ crore)
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Revenue from operations | 636.6 | 828.0 | 1,144.5 |
| Reported PAT | - | -92.7 | ~240.0 |
Important: FY25 profit includes ~₹211 cr deferred tax credit; on a pre-tax basis, profit was ~₹28 cr. Focus on operating leverage sustainability into FY26.
Valuation sense-check
- Implied market cap: ~₹14.7k–15k cr at the upper band (street estimates).
- P/S (FY25): ~12.9× on ₹1,144 cr revenue — premium for category leadership + product attach story.
- GMP chatter: ~35% over the cap price (unofficial; highly volatile; not advice).
Strengths & risks
What’s working
- Brand & standardization quality control as moat in home services
- Attach flywheel devices → recurring service demand
- Retention improving repeat mix; better marketing efficiency
Watch-outs
- Profit quality FY25 aided by deferred tax credit
- CAC & promos marketing spend still meaningful
- Ops at scale partner quality, SLAs, regulatory shifts
- Inventory risk in attach products if specs/returns slip
“Should I apply?” — 90-second checklist
- Portfolio fit: Want marketplace + devices/consumables attach exposure?
- Growth bar: At ~13× sales, you’re underwriting multi-year 30%+ growth and margin lift.
- Profit lens: Evaluate pre-tax trends and Q1 FY26 run-rate, not just FY25 PAT.
- Risk comfort: Service-quality & labour/regulatory risks acceptable?
- Allocation math: Retail ≤10% of net offer; min bid 145 shares.
Quick math Min application at ₹103 ≈ ₹14,935. Tentative listing Sep 17.
How to apply (retail)
- Open your broker app (or bank ASBA) → IPO → select Urban Company.
- Choose cut-off price (or pick within band), enter lots (145 shares/lot).
- Block funds via UPI/ASBA. You can modify/cancel until 5 pm on closing day.
- Check allotment on registrar’s page; refunds/credit typically T+2; listing T+3.