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Urban Company IPO Day 3 Live: The initial public offering of Urban Company Ltd, which is a platform for beauty and home services accessible via an app, achieved a subscription rate of 9 times by the second day of bidding on Thursday.

The segment for non-institutional investors was oversubscribed by 18.22 times, while Retail Individual Investors (RIIs) saw a subscription rate of 17.68 times. The portion allocated to Qualified Institutional Buyers (QIBs) attracted a subscription rate of 1.48 times.

Urban Company IPO GMP today is ₹43. This indicates Urban Company share price were trading at a premium of ₹43 in the grey market today, according to investorgain.com.

Urban Company IPO was completely subscribed just a few hours after the bidding process commenced on Wednesday, concluding the day with a subscription rate of 3.13 times.

On Tuesday, Urban Company secured ₹854 crore from its anchor investors. Urban Company IPO, valued at ₹1,900 crore, is available for subscription until September 12, with a Urban Company IPO price band is set between ₹98 and ₹103 per share.

Urban Company operates a comprehensive online marketplace driven by technology, offering quality-focused services and solutions across various categories related to home and beauty. Beyond India, it is also available in the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia.

The lead managers for this issue are Kotak Mahindra Capital Company, Morgan Stanley India Company, Goldman Sachs (India) Securities, and JM Financial.

(Stay tuned for more updates)

Urban Company IPO subscription status was 29.05x on day 3. The retail portion was subscribed 29.05 times, and NII portion has been booked 50.99x, Qualified Institutional Buyers (QIBs) portion received 18.10 times bids. Employee portion subscribed 24.47 times.

The company has received bids for 3,10,13,39,605 shares against 10,67,73,244 shares on offer, at 12:57 IST, according to data on BSE.

"The IPO has so far garnered 28.32 lakh applications, underlining strong investor confidence and positioning Urban Company among the most actively subscribed issues of the year.

For investors, this IPO is a high-risk, high-reward bet, suitable only for those with a long-term horizon who believe in the company’s ability to scale sustainably as online penetration deepens. Our stance would be to ‘apply with caution,’ given the growth potential but stretched valuations,” said Gaurav Garg, Lemonn Markets Desk.

“Consistent strong growth and increased margins are necessary to validate this valuation, providing little opportunity for immediate re-rating. Therefore, we advise risk-tolerant investors looking to invest in the fast-growing home services market to ‘SUBSCRIBE WITH RISK’ to the Urban Company Ltd IPO solely for a long-term view,” stated Mehta Equities.

'The issue is priced at a P/BV of 8.25 based on its NAV of Rs. 12.48 as at Q1FY26. If we attribute FY26 earnings, then the asking price is at a P/E of ~515x and FY25 P/E stands at ~60x. As per RHP there are no listed peers. Urban Company gives investor an opportunity to invest in India’s dynamic gig economy. Looking at all the factors, risks, opportunities and valuation and also the advantage of first mover, investors can invest with long term horizon,’ said Sushil Finance.

The company raised ₹854 crore from anchor investors just one day before its initial public offering for public subscription commenced. A variety of domestic and international organizations participated in the anchor round, including Government Pension Fund Global, Nomura Funds Ireland Public Limited Company, Fidelity Funds, Florida Retirement System, Allspring Global Investments LLC (EMSC), Theleme India Master Fund Ltd, and Amundi Funds New Silk Road, as mentioned in a circular on the BSE's website.

Moreover, participants in the anchor round included Nippon India Mutual Fund (MF), Aditya Birla Sun Life MF, ICICI Prudential MF, SBI MF, SBI Life Insurance Company, and ICICI Prudential Life Insurance Company.

As stated in the circular, the company allocated 8.29 crore equity shares to anchor investors at a price of ₹103 each, which involved 59 funds. This results in a total fundraising figure of ₹854 crore.

Tentatively, Urban Company IPO basis of allotment of shares will be finalised on Monday, September 15 and the company will initiate refunds on Tuesday, September 16 while the shares will be credited to the demat account of allottees on the same day following refund. Urban Company share price is likely to be listed on BSE and NSE on Wednesday, September 17.

Urban Company IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

Urban Company IPO GMP is ₹43. This indicates that Urban Company's share price is trading at a premium of ₹43 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price for Urban Company shares is ₹146 apiece, which is 41.75% higher than the IPO price of ₹103.

The grey market trends over the past 11 sessions signal an upward trend and a likely solid debut. The minimum GMP for Urban Company IPO stands at ₹10.00, whereas the maximum GMP is ₹43, as per analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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