The initial share sale seeks to raise ₹1,900 crore via fresh issuance of ₹472 crore as well as an offer for sale (OFS) of ₹1,428 crore.
Under the OFS, Accel India IV (Mauritius) Ltd, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, VYC11 Ltd, and Elevation Capital V Ltd will offload their stake.
The fresh issue proceeds of the mobile app-based beauty and home care services provider will be used for expenditure for new technology development and cloud infrastructure, lease payment for offices, marketing activities and general corporate purposes.
The IPO’s lot consists of 145 shares and in multiples thereafter. Urban Company has reserved 75% of the net offer for qualified institutional buyers (QIBs), 10% for retail investors and 15% for non-institutional investors.
The allotment for the issue is expected to be finalised on September 15, and following that, shares of Urban Company are expected to be listed on the stock exchanges on September 17.
Morgan Stanley India Company, Kotak Mahindra Capital Company, JM Financial and Goldman Sachs (India) Securities are the book-running lead managers to the issue. MUFG Intime India is the registrar.
Urban Company is a home services provider, connecting individuals with professionals for various home services. It operates in 51 cities across India, the United Arab Emirates and Singapore, except for cities covered by its joint venture (JV) in the Kingdom of Saudi Arabia, of which 47 cities are in India, as of June 2025.
The platform allows customers to order services like cleaning, plumbing, electricians, pest control, carpentry, home-help assistance, appliance servicing and repair, hair grooming, skincare, massage therapy and more.
The company emphasises professional quality through extensive training, OEM tools, and efficient service delivery, with nearly 90% of orders fulfilled within 3 days. Its advanced technology platform leverages AI, ML, and GenAI for demand forecasting, skill-based matching, and real-time quality control, enhancing operational efficiency.
Urban Company is also focused on innovation, developing proprietary tools and consumer products like long-life water purifiers and smart electronic locks.
Its success heavily depends on attracting and retaining service professionals, with around 48,000 active professionals on average in FY25, but competition and regulatory challenges pose a risk to supply. Operational risks such as errors, fraud, and misconduct remain a concern, with counterfeit product complaints leading to increasing goodwill refunds over the past years.
According to investorgain.com and media reports, the unlisted shares of Urban Company are trading at ₹30.5 per share. It reflects a listing price of ₹133.5 apiece at a premium of 29.61% on the upper limit of the price band.