Why Urban Company rose nearly 74% on listing day: Key qualitative factors from the RHP

At 2:00 pm, it was up 1.35% to ₹164.44.

On the BSE, the scrip began trading at ₹161, reflecting a surge of 56.31%.

The proceeds from the public offer will be utilised to the tune of ₹190 crore for new technology development and cloud infrastructure, ₹90 crore for marketing activities and ₹75 crore for lease payment of its offices. A portion will also be used for general corporate purposes.

Why Urban Company soared nearly 74% on listing day: A look at qualitative factors (in points) from RHP

• The IPO of Urban Company secured a massive 103.63 times subscription during the bidding period due to strong participation from all investor categories.
• According to the red herring prospectus, Urban Company's multi-category, hyper-local, home and beauty services marketplace benefits from network effects.
• The company is an established brand which is trusted by consumers.
• The firm, in its RHP, said that it improves the quality of service professionals by providing in-house training and access to tools and consumables.
• It has a robust technology platform, fuelling service fulfilment, consumer growth and service professional empowerment.
• It has innovation and product development capabilities.
• The firm's scale and technological capabilities have helped it to improve its profitability.
• Urban Company is a promoter-led firm with an experienced management team.
• On the financial front, the company's net profit stood at ₹239.76 crore in the financial year 2024-25 vs a loss of ₹92.77 crore a year back. Its revenue jumped 38.21% year-on-year (YoY) to ₹1,144.46 crore.

Urban Company share price lists above GMP estimates

Urban Company shares listed at a 57.52% premium on the NSE. This is better than the grey market premium estimates, which had suggested listing at a 52.43% premium, according to investorgain.com and media reports.