Urban Company’s ₹1,900 Crore IPO Sets New Record with 104x Subscription

Urban Company, India’s leading home services platform, has marked a significant milestone in the Indian stock market by launching the most subscribed initial public offering (IPO) of 2025. The ₹1,900 crore IPO, open for subscription from September 10 to 12, garnered an overwhelming response, being subscribed 104 times. This marks a new record for the year, surpassing previous high-profile listings.

Unprecedented Investor Interest

The IPO received bids for approximately 1,106.5 crore shares, compared to the 10.6 crore shares on offer. Institutional investors led the demand, with Qualified Institutional Buyers (QIBs) subscribing 140.2 times their allotted portion. Foreign institutional investors bid for 264.9 crore shares, while domestic financial institutions and insurers offered 319.7 crore shares. Mutual funds accounted for 56.7 crore shares. Non-Institutional Investors (NIIs) subscribed 74 times, and the employee segment was subscribed 36.8 times.

Company Overview and Financials

Founded in 2014, Urban Company has transformed the home services industry by connecting consumers with professionals for various services, including beauty treatments, cleaning, and appliance repairs. The company reported a 38% increase in revenue to ₹1,144 crore in the last financial year and achieved profitability in the first quarter of FY25. The IPO comprises a fresh issue of ₹472 crore and an offer for sale of ₹1,428 crore, with the proceeds aimed at expanding technology infrastructure and marketing efforts.

Market Implications and Outlook

The overwhelming subscription reflects strong investor confidence in Urban Company’s business model and growth prospects. The listing is scheduled for September 17, and analysts anticipate a positive debut. The success of this IPO may encourage more tech-driven startups to consider public listings, signaling a robust appetite for such offerings in the Indian market.

Conclusion

Urban Company’s record-breaking IPO underscores the growing investor interest in India’s tech-enabled service sector. With strong institutional backing and a solid financial track record, the company is poised for a successful market debut, setting a benchmark for future startups aiming to go public.