The IPO will be launched in mid-September 2025 and is widely buzzing--grey markets are surging in terms of premiums. The Urban Company IPO in plain simple terms here.

IPO Basics & Key Dates

• IPO Open Date: September 10, 2025
  
• IPO Close Date: September 12, 2025
  
• Listing Date (Estimated): September 17, 2025
  
• Allotment Date: Around September 15, 2025
  

Price Band, IPO Size, and Lot Size

• Price Range: ₹98 to ₹103 per share
  
• Total Issue Size: ₹1,900 crore
  
• Fresh Issue: ₹472 crore fresh share issue
  
• Offer for Sale (OFS): ₹1,428 crore of existing investors (Accel India, Bessemer, Elevation Capital, Internet Fund V, VYC11)
  
• Lot Size: 145 shares per lot
  
• Retail Minimum Investment: Approx ₹14,935 (if priced at ₹103)
  
• Allocation Split:
  
• QIBs: ~75%
  
• Non-Institutional Investors (NIIs): ~15%
  
• Retail: ~10%
  
• Employee Reserved Segment: ₹2.5 crore allocation (discounted rate)
  

Grey Market Premium (GMP): Listing Hopes

• Current GMP: ₹28–32 per share, as per recent tracking
  
• Establishes a possible listing price of ₹130-136 a share--approximately 27-30 percent above the top of ₹103.
  
• GMP Trend: The GMP has increased two to threefold since the IPO announcement, which is an indication of high investor enthusiasm, but casts doubt on the valuation and sustainability. 

Why the Buzz Around This IPO?

1. Profitability Milestone:  FY25 Urban Company became profitable with net profit of approximately ₹240 crore, as compared to losses of ₹93 crore.
   
2. Strong Financial Growth: FY25 revenue increased by ₹1,144.5 crore over ₹927.99 crore in FY24. Previous data also demonstrate a definite upward trend in the revenues and margin growth.
   
3. Well-Regarded Business Model: Urban Company is a leading player in the home and beauty sectors (technology-enabled services) with a scalable, asset-light business model in place in India, UAE, Singapore and Saudi Arabia.
   
4. Use of IPO Funds: Proceeds will provide capital to technology and cloud infrastructure (₹190 cr.), office leases (₹75 cr.), marketing (₹90 cr.), and general operations.
   

Risks & Investor Considerations

The IPO has its share of risks despite the optimism in the air as observed in the Red Herring Prospectus and media analysis:

• Past Losses & Cash Flow: Urban Company recorded net losses and negative operating cash flows in the recent times despite a profitable performance in FY25.
  
• High Valuation: GMP implies high listing expectations, which might not be carried into the future in the case of slowed growth.
  
• Intense Competition: Urban Company falls into an environment of strong competition, where gig workers and the grouping of services are used intensively.
  
• Regulatory and Operational Risks: The potential threats identified are dependence on a gig economy, potential regulatory challenges, data protection, and geographic concentration.
  
  

Quick IPO Timeline Table

FAQs – Urban Company IPO

Q-1. When does the Urban Company IPO open and close?

Ans- It opens and closes on 10 th and 12 th September 2025. Probably to be allotted as of September 15 and Listed as of September 17, 2025.

Q-2. What is the price band and total issue size?

Ans- The price band is ₹98-103 per share. The IPO valuation is ₹1,900 crore including a ₹472 crore fresh issue and a ₹1,428 crore offer-for-sale.

Q-3. What is the GMP and expected listing price?

Ans- GMP = ₹28-32, which implies a potential listing price of ₹130-136--approximately or 27 times above the upper end of the price band.

Q-4. Is the company profitable?

Ans- Yes. Urban Company announced its initial full-year net gain of approximately ₹240 crore in FY25 which spells in a turnaround in terms of finances. 

Q- 5. What risks should investors consider?

Ans- They are past losses, competition, regulatory considerations, valuation premium, reliance on gig workers and data security risks.