Urban Company IPO GMP Surges 45% as Issue Subscribed 24x on Final Day

Urban Company’s Initial Public Offering (IPO) witnessed overwhelming investor participation on September 12, the final day of bidding. The IPO, valued at Rs 1,900 crore, saw bids pouring in across all categories, pushing subscription levels to record highs and lifting its Grey Market Premium (GMP).

According to platforms tracking grey market trends, Urban Company’s GMP surged nearly 45 percent, with Investorgain quoting Rs 45 per share. This reflects a potential listing gain of 43.69 percent for investors.

The heightened GMP indicates rising investor confidence in the company’s growth story ahead of its official market debut.

Subscription Status on Final Day

By 12:45 p.m. on September 12, NSE data showed bids for over 250 crore shares against 10.67 crore shares on offer, translating to an oversubscription of nearly 24 times.

• Non-Institutional Investors (NIIs): 46.09x subscription

• Retail Individual Investors (RIIs): 27.69x subscription

• Qualified Institutional Buyers (QIBs): 10.69x subscription

Such strong demand across categories placed Urban Company among the most actively subscribed IPOs of the year.

Price Band and Valuation

The IPO was launched with a price band of Rs 98-103 per share. At the upper end, the company’s valuation stands at Rs 14,790 crore.

Before the IPO opened to the public, Urban Company had already secured Rs 854 crore from anchor investors, reinforcing the strong institutional backing behind the issue.

Also Read: Urban Company IPO: Deven Choksey Recommends Subscription – A Detailed Analysis

Market Expert View

Gaurav Garg, from Lemonn Markets Desk, highlighted that the IPO has garnered strong investor confidence. He noted:

“The IPO has garnered strong investor confidence, positioning Urban Company among the most actively subscribed issues of the year.”

However, Garg also cautioned investors, describing the IPO as a “high-risk, high-reward bet.” He suggested that it is most suitable for investors with a long-term horizon who believe in the company’s ability to scale sustainably as online service penetration deepens.

He added that while the growth potential is strong, valuations appear stretched, and therefore, investors should apply with caution.

Utilization of IPO Proceeds

The company intends to deploy the funds raised from the IPO towards several business objectives, including:

• New technology development and cloud infrastructure

• Lease payments for offices

• Marketing activities

• General corporate purposes

This reflects Urban Company’s focus on expanding its digital and physical infrastructure while simultaneously strengthening its brand visibility.

Listing and Allotment Details

Urban Company IPO shares are scheduled to be listed on both NSE and BSE on September 17.

The allotment of shares is expected to be finalized by Monday, September 15, following which investors will know their allocation status.

Conclusion

Urban Company’s IPO has captured significant attention in the primary market. With subscription levels reaching nearly 24 times and a GMP soaring 45 percent, the issue signals strong investor appetite.

While the IPO’s strong response underlines confidence in the company’s business model, experts caution that its valuation demands careful consideration. Investors are advised to evaluate their risk appetite before participating, especially given the high-risk, high-reward profile of the offering.

The upcoming listing on September 17 will be closely watched, as investors look to see if the market debut aligns with the grey market expectations of hefty listing gains.

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