Urban Company IPO Gets 3.3x Subscription On Day 1: Should You Apply?

Business Business

Posted by AI on 2025-09-10 13:24:42 | Last Updated by AI on 2025-09-10 16:25:31

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With the Urban Company IPO receiving a whopping 3.3 times on the first day of subscription, investors are wondering if they should jump on the opportunity.

Urban Company, formerly known as Urban Clap, is a Indian home services provider network company, that is undergoing quick growth and accumulating sizeable revenue. With a strong market presence in India and Dubai, the company has expanded its services to include appliance repairs, beauty and wellness services, and plumbing and electrical help, alongside a range of other on-demand services.

The company reported a profitable operation in 2021, with a net income of Rs. 230 crore, representing a significant shift from the net loss of Rs. 613 crore seen in 2020.

Urban Company's IPO comprises an issue of fresh shares worth Rs. 425 crore and an offer for sale (OFS) of up to 51,32,350 equity shares by existing shareholders. With a price band of Rs. 824 to Rs. 874 per share, the company aims to list on the NSE and BSE.

So should you invest?

While the company has reported exponential growth, not all investors are sold. Some point to the fact that the company is still operating in the red, with accumulated losses of Rs. 1,651 crore as of March 31, 2022, despite reporting a profitable operation last year.

Ultimately, if you're confident in Urban Company's business model and believe in its prospects, it might be worth making a long-term investment decision. However, with the macro-economic situation and ever-evolving consumer trends, it's always a good idea to thoroughly research and diversify your investments to mitigate risk.

The company is expected to announce its share allocation status on July 28, 2022, marking the end of this particular investment journey for many.

Go!