Urban Company IPO GMP Surges 30%; Experts Advise Caution Before Listing
Strong Grey Market Demand Ahead of September 10 Launch, But Profitability Concerns Remain
Urban Company’s much-anticipated IPO is creating quite a buzz. Scheduled to open from September 10 to 12, the company aims to raise ₹1,900 crore, with shares priced between ₹98 and ₹103 each. But it’s the surge in Grey Market Premium (GMP), jumping nearly 30% in just six days, that’s grabbing investors’ attention.
A GMP of ₹28 over the IPO price suggests a potential listing gain of around 27%, reflecting strong enthusiasm in the market. However, experts are urging investors to look beyond the hype. The GMP is an unofficial figure and can be unpredictable, so it shouldn’t be the only factor guiding investment decisions.
Urban Company, founded in 2014 and based in Gurugram, operates in 51 cities across India, the UAE, and Singapore. It offers a variety of services, from home cleaning and pest control to plumbing, electrical work, beauty treatments, and appliance repairs. The company plans to use the funds raised to improve its technology, expand infrastructure, pay office leases, and boost marketing efforts.
Despite the excitement, some red flags remain. The company’s revenues have grown steadily, from ₹828 crore in FY24 to ₹1,144 crore in FY25, but profitability has been uneven. While it recorded a net profit of ₹27 crore over the first nine months of FY25, profits slipped sharply in the first quarter of FY26. Past years have also seen net losses and negative cash flows, raising questions about long-term sustainability.
“Urban Company’s growth story is impressive, but maintaining profitability will be key,” says a market analyst. “Investors should carefully weigh the risks and not get swept up in the hype.”
The IPO will open for subscription on September 10 and close on September 12, with anchor investors able to bid starting September 9. Retail investors can apply for a minimum of 145 shares, meaning an investment of roughly ₹14,210 at the lower end of the price band. Final allotments are expected by September 15, and the shares are slated to debut on the stock exchange on September 17.
As Urban Company approaches its market debut, investors are advised to balance optimism with due diligence, carefully evaluating the company’s financial strength and long-term prospects before making investment decisions.