Urban Company IPO Opens: GMP, Valuation, Subscription and Expert Review
Urban Company IPO Opens: The much-awaited Urban Company IPO has officially opened for bidding today (10 September 2025) and will remain open until 12 September 2025. Investors can subscribe between 10:00 AM to 5:00 PM on all three days. The company has set the IPO price band at Rs.98 to Rs.103 per share, aiming to raise Rs.1,900 crore, of which Rs.472 crore will come from fresh shares and Rs.1,428 crore from an Offer for Sale (OFS).
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Strong Grey Market Buzz
Urban Company’s IPO has created a buzz in the grey market even before its opening. According to market observers, the IPO’s grey market premium (GMP) stands at Rs.37 today, up from Rs.35 yesterday. This indicates a potential 36% listing gain for early investors, making it one of the most watched IPOs of the month.
Key IPO Details
Here are some quick highlights of the Urban Company IPO:
- Price Band: Rs.98–Rs.103 per equity share
- Issue Size: Rs.1,900 crore (Rs.472 crore fresh issue, Rs.1,428 crore OFS)
- Lot Size: 145 shares per lot
- Allotment Date: Expected on 13–15 September 2025
- Listing Date: Likely on 17 September 2025 at BSE & NSE
- Registrar: MUFG Intime India Pvt Ltd
- Lead Managers: Kotak Mahindra Capital, Morgan Stanley India, Goldman Sachs (India), JM Financial
Expert Opinions on Valuation
When it comes to valuations and risks, experts are divided. Gaurav Garg of Lemonn Markets calls it a “high-risk, high-reward bet” suitable for long-term investors. At the upper price band of Rs.103, the company’s market cap is estimated at Rs.14,790 crore, translating to a 10x Market Cap-to-Sales multiple based on FY26 earnings. Analysts believe the premium valuation reflects Urban Company’s strong business model, but it leaves little room for short-term upside.
Subscribe or Avoid?
So, should investors apply? Analysts like Anshul Jain of Lakshmishree Investments recommend “Subscribe with Risk”, while firms like Master Capital Trust, Arihant Capital, Dr. Choksey Finserv, Canara Bank Securities, and BP Equities have given a straightforward ‘Subscribe’ rating, citing the company’s growth potential, service expansion plans, and strong consumer focus.
Final Verdict
The Urban Company IPO is generating strong interest with a robust GMP and multiple ‘Subscribe’ ratings. However, the stretched valuation means this IPO may not suit short-term investors. For those with a long-term horizon, Urban Company could be a promising addition to their portfolio.
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