By Madhu Balaji

Copyright thehindubusinessline

Shares of Urban Company Ltd, the app-based beauty and home services platform, rallied over 70 per cent on the stock exchanges on Tuesday, after listing at a significant premium over its initial public offering (IPO) price of ₹103.

On the National Stock Exchange, the stock opened at ₹162.25, a 57.5 per cent premium. It debuted at ₹161, reflecting a 56.3 per cent premium on the BSE. Post-listing, the stock scaled over 70 per cent higher from the issue price to ₹179 mark.

Bloomberg reported that Prosus NV has more than doubled its stake in the company, ahead of listing, and is now one of the firm’s biggest shareholders.

The biggest ₹1,900-crore IPO had received an overwhelming response during the subscription period. On the final day of bidding, the issue was subscribed 103.63 times, with bids for 1,106.44 crore shares against 10.67 crore shares on offer, according to NSE data.

The successful listing underscores strong investor confidence in Urban Company’s business model and growth prospects in the rapidly expanding home and beauty services sector in India.

Prashanth Tapse, Senior VP (Research), Mehta Equities, said that the listing was above expectations. Despite the listing pop, Urban Company presents a compelling long-term structural story and can serve as a proxy for the growing demand in the home services segment across its key geographies.”

Mehta Equities continued to recommend allotted investors who can take near-term risk to hold the stock from a long-term investment perspective, keeping in mind the inherent market risks. “For non-allotted investors, a ‘wait-and-watch’ approach is advisable to assess any post-listing dip as a potential entry point.”

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, advised investors who received allotment to consider partial profit and hold rest for long-term gains with stop loss of ₹120.

Urban Company, formerly known as UrbanClap, is a leading tech-enabled home services platform offering a wide range of services, including beauty and wellness, appliance repair, cleaning, and maintenance.

In FY25, Urban Company logged a revenue of ₹1,144 crore, a 38 per cent y-o-y growth, and ₹240 crore (a significant turnaround from a ₹93 crore loss in FY24, Nyati noted.

Published on September 17, 2025