Synopsis
Urban Company’s shares made a strong debut on Indian exchanges, listing at a premium of over 56% to its issue price. The company plans to utilize its IPO proceeds for technology development, office leases, and marketing. It reported a 38% increase in operating revenue to Rs 1,144 crore for 2024-25, achieving profitability with a net profit of Rs 240 crore.
Urban Company shares started trading on Indian exchanges on Wednesday, listing at a premium over their issue price of Rs 103. The scrip listed 57.52% higher at Rs 162.25 apiece on the NSE, and 56.3% higher at Rs 161 per share on the BSE.
On NSE, the counter climbed to Rs 179 per share in the first few minutes of trading, which is 74% higher than the IPO price. The company’s market capatlisation stood at Rs 24,770.74 crore as of 10:07 am.
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“I don’t think anybody expects a 100X subscription. We are fully cognisant that this is not a reflection of where the company is today. It is a promise of what the company could be in the future and so it’s more the weight of the responsibility,” he said.
Urban Company was adjudged Startup of the Year at the ET Startup Awards 2025 on August 28.
On whether the IPO was timed right given the aggressive investments in InstaHelp, Bhal said, “There’s never a perfect time… any ambitious company will always have bets. We operate in a very dynamic market. As builders, we must think long term. Over the next two or three quarters there will be ups and downs, but as management we can’t get distracted by that.
Using the IPO proceeds
As per the draft red herring prospectus (DRHP) filed by the company, this is how Urban Company will deploy the Rs 472 crore from the fresh issue:
- Rs 190 crore for new technology development and cloud infrastructure;
- Rs 70 crore on office leases;
- Rs 80 crore on marketing activities;
- A portion will be spent on general corporate purposes.
Urban Company FY25 Financials
Urban Company on June 18 reported a 38% increase in its operating revenue for 2024-25 to Rs 1,144 crore. The platform swung into the black, posting a net profit of Rs 240 crore.
The turnaround came on the back of a Rs 211 crore deferred tax credit. However, even on a pre-tax basis, the company reported a profit of Rs 28 crore.
In 2024, the company had reported a net loss of Rs 93 crore, down from Rs 312 crore in the previous financial year. Its operating revenue was at Rs 827 crore.
Source: www.economictimes.indiatimes.com