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As per the current figures in the unlisted market, Urban Company is commanding a premium of ₹51, according to market observers. If that holds, the shares can list at a premium of up to 50% from their issue price of ₹103 per share.

– Annual net profit as of March 2025 is ₹290 crore, which is growth of 2690.9% year-on-year.

– Annual revenue as of March 2025 is ₹910 crore, which is growth of 32.4% year-on-year.

Urban Company already raised ₹854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.

– Expenditure for new technology development and cloud infrastructure;

– Expenditure for lease payments for the offices;

– Expenditure towards marketing activities;

– General corporate purposes.

The IPO of Urban Company is witnessing robust activity in the grey market. Shares of the company are quoting a grey market premium of ₹52, reflecting a premium of 49% over the issue price of ₹103.

– The company has reported net losses and negative operating cash flows in the past. Future profitability hinges on revenue growth, cost efficiency, and the successful scaling of new offerings, with no assurance of sustained profits.

– Competition from offline providers, niche online platforms, and new entrants, both in India and abroad, may pressure market share, pricing, and margins.

– Expansion into international markets exposes the company to currency, legal, regulatory, operational, and competitive risks.

– Expanding consumer base and market penetration

– Improving consumer retention and spending

– Launching new product and service offerings

– Investing in technology and infrastructure

At the upper end of the price band, the company is valuing at a P/E (price-to-earnings) of 65.7 times to its FY25 earnings with P/S of 12.9 and market cap of nearly Rs 14,790 crore post issue of equity shares.

Qualified institutional buyers subscribed 140.20 times their allotted quota, while non-institutional investors (high-net-worth individuals) subscribed 74.04 times. Retail investors bought 39.25 times their portion, and employees subscribed 36.79 times the reserved shares.

Kotak Mahindra Capital

Morgan Stanley India

Goldman Sachs (India) Securities

JM Financial

The three-day, ₹1,900 crore issue of Urban Company, received a healthy response from investors, particularly those from the institutional side. Retail investors’ portion was also over subscribed.

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