Urban Company IPO GMP Surges on Day 3 – Subscription Status and Listing Date

Urban Company’s IPO has set the market buzzing. On Day 3, the offering was oversubscribed nearly 26× and its Grey Market Premium (GMP) jumped to ₹43 per share, or about 42 % over the issue price. We see big demand from all kinds of investors, retail, non-institutional, and institutional. The IPO size is large (~₹1,900 crore), and the price band is ₹98-103 per share. We are now about to hit the final subscription day, and listing is expected on September 17, 2025.

We will explore why GMP surged, the subscription trends so far, and what the listing day might look like. We will also see whether it’s a good move to apply now or wait.

What is the Urban Company IPO?

• The IPO opened on September 10, 2025, and closed on September 12, 2025.
• Price band: ₹98 to ₹103 per share.
• Total size: about ₹1,900 crore. That includes a fresh issue of ~₹472 crore, and an offer for sale (OFS) of ~₹1,428 crore by existing shareholders.
• Shares are expected to list on September 17, 2025, on both NSE and BSE. The basis of allotment is likely around September 15, with refunds and shares credited shortly after.

Grey Market Premium (GMP) – What’s the Buzz?

• GMP today (Day 3) is about ₹43 per share. That means people expect the listing price to be roughly 41-42% higher than the top price of ₹103.
• Yesterday, GMP was a bit lower, around ₹39-₹40.
• GMP has been rising steadily over the subscription period. From the first day till now, it’s climbed by several rupees, pointing to growing confidence in how the market views Urban Company.

Subscription Status – How Hungry is the Market?

We observe from the numbers that investors are flocking to this IPO. The overall subscription (how many times the IPO has been applied for vs how many shares are offered) is very high.

• By midday on Day 3, the IPO was oversubscribed ≈ 25.96-26×. That means for every share offered, ~26 applications had been made.
• Breaking that down by category:
    • Retail investors have applied ~ 29× their reserved quota.
    • Non-Institutional Investors (NIIs) have applied much more, ~ 50-52× their quota.
    • Qualified Institutional Buyers (QIBs) are lower, but still strong, with ~ 18-20× in many reports.
• On Day 2, the IPO had already seen about 9× subscription overall. Retail and NIIs were especially active.

Financials & Fundamentals

We also need to examine how the company is doing behind the scenes, because without good performance, high GMP may not be sustained.

• For FY 2024-25, Urban Company reported revenue of ~₹1,144-1,145 crore, a growth of ~38% over the previous year.
• It achieved its first full-year profit: net profit ~ ₹240 crore, but much of that came from a deferred tax credit of ~₹211 crore. Without that, profit is modest (~₹28 crore) on a pre-tax basis.
• In Q1 FY 26, margins are improving but are still small. EBITDA margins are low, showing that costs remain high.

Strengths include a strong brand, a wide service portfolio (home, beauty, repairs, etc.), a tech platform, and expansion potential. Risks include high valuation, competition from unorganised players, and the sustainability of profits.

Valuation & Peer Comparison

• At the upper end of the issue price (₹103), the post-IPO market cap will be almost ₹14,790 crore (~$1.7 billion).
• Valuation metrics are high. Some reports say Price/Sales multiples are high relative to younger companies in similar sectors. Returns on margin and profitability have to improve to justify this price.

Listing Date & What GMP Suggests

• Allotment is expected around September 15, with shares listing on September 17, 2025.
• With GMP ~₹43, potential listing gains are estimated at ~40-44%, if things go as per grey market signals.
• That means someone who buys at the IPO price could see their shares listed at ~₹145-₹150.

Should We Apply? (Our View)

We, from analysing the numbers, think this IPO offers strong short-term listing gain potential. But it may be expensive for long-term performance unless margins and profits improve.

Pros:

• Big demand signals. Oversubscription and GMP both suggest investors expect a high first-day jump.
• The company is now profitable for a full year, showing progress.
• Strong brand, large market opportunity; the home services sector is still underpenetrated.

Cons:

• Valuation is rich. You’re paying up front for growth expectations more than stable earnings.
• OFS is large; this means a lot of shares are being sold by early investors. This doesn’t inject fresh money into business operations.
• Risk of competition and unorganised players. Also, sustaining margins in the service business is hard.

So, if you are risk-tolerant and want short-term listing gains, applying makes sense. If your strategy is long-term value, it’s wise to carefully think whether this premium is justifiable.

Conclusion

Urban Company IPO is clearly one of the more exciting IPOs in recent times. With GMP at ~₹43, oversubscriptions in the -20-50× range in many investor categories, and listing expected on 17 September 2025, the market is betting on a large price jump.

We believe the listing gains are likely real. But whether Urban Company delivers consistent profits and growth over the years is less certain. For now, investors have to choose: chase gains or hold out for fundamentals.

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Disclaimer:

This content is for informational purposes only and is not financial advice. Always conduct your research.