Last Day Frenzy: Urban Company IPO Hits 20x Subscription, Fueled by Massive Retail & NII Demand
Retail investors and non-institutional bidders swarm Urban Company's final subscription day—driving the offer to a staggering 20x oversubscription.
Why the Mad Rush?
Individual and high-net-worth investors piled in, betting big on the household services platform—ignoring traditional IPO skepticism and market jitters.
Final Countdown:
The books are nearly closed. If you haven’t thrown your hat in yet, time’s running out—fast.
Another hyped-up debut? Maybe. But in a market where everyone’s chasing the next multibagger, FOMO beats fundamentals every time.
Retail and NII segments lead
Investor interest was led by non-institutional investors, whose quota was subscribed 40.57 times, while the retail investors category saw 26.11 times subscription. The qualified institutional buyers (QIBs) segment stood at 7.26 times and employee portion at 19.21 times at 11.57 am on September 12.
Anchor investment
On Tuesday, the company raised ₹854 crore from anchor investors, including GIC, Fidelity, Norges Bank and Nomura, by allotting 8.29 crore equity shares at the upper price band of ₹103.
Also read
Dev Accelerator IPO subscribed 21x with strong retail participation; last day to bid today
IPO: Fresh issue, OFS, price band
The ₹1,900 crore issue comprises a fresh issue of ₹472 crore and an offer for sale (OFS) of ₹1,428 crore by existing investors, including Accel India, Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte Ltd, and VYC11 Ltd.
The IPO, which will close for subscription today, is priced in the band of ₹98–₹103 per share, valuing the company at ₹14,790 crore at the upper end. The minimum lot size is 145 shares.
The IPO is being managed by Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt Ltd, Goldman Sachs (India) Securities Pvt Ltd, and JM Financial Limited as book running lead managers. The registrar to the issue is MUFG Intime India Private Limited.
Also read
Dev Accelerator IPO & Urban Company IPO: Key takeaways
Gaurav Garg, Lemonn Markets Desk, emphasised that the IPO is 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.”
To know more about what brokerages say, read here
Use of Proceeds
Urban Company plans to deploy the fresh capital for technology development and cloud infrastructure, office lease payments, marketing activities and general corporate purposes.
GMP & Listing date
As per reports, the unlisted market suggests a grey market premium of ₹43 per share. Shares will likely debut on bourses on September 17.
Published on September 12, 2025
