Urban Company Limited, formerly known as UrbanClap Technologies India Limited, has submitted its Monitoring Agency Report for the quarter ended March 31, 2026, in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report was prepared by CARE Ratings Limited in its capacity as the Monitoring Agency and was reviewed and approved by the Audit Committee and Board of Directors at their respective meetings held on May 08, 2026.

IPO Overview and Compliance Status

Urban Company's IPO, which was open from September 10, 2025, to September 12, 2025, raised gross proceeds aggregating to Rs. 472.00 crore through the issuance of equity shares. CARE Ratings Limited confirmed that the issue proceeds have been utilised in accordance with the objects stated in the offer document, with no material deviations observed. The monitoring agency's report is based on a Chartered Accountant certificate issued by JC Bhalla & Co. dated May 04, 2026, along with bank statements and management certificates.

The following table summarises the planned cost allocation across the identified objects of the IPO:

IPO Proceeds Utilisation — Q4FY26 Progress

As of the end of Q4FY26 (March 31, 2026), Urban Company had cumulatively utilised Rs. 97.34 crore of the total IPO proceeds, with Rs. 40.87 crore deployed during the quarter. The remaining unutilised amount stands at Rs. 374.66 crore. The table below details the utilisation progress across each object:

For the technology development and cloud infrastructure object, Rs. 13.64 crore was spent on salary payments to the engineering team and Rs. 5.48 crore on payments to Minfy Technologies Private Limited for AWS services during the quarter. Marketing expenditure of Rs. 11.92 crore during the quarter was directed towards payments to Google India Private Limited and Jiostar India Private Limited for advertising services. No amount was utilised under General Corporate Purposes during Q4FY26.

Implementation Delays Noted

The monitoring agency noted shortfalls against the FY26 scheduled deployment targets for several objects. The table below captures the delays identified:

The exact number of days of delay was noted as not ascertainable for all applicable objects. The Board of Directors offered no comments on the reasons for delay or proposed course of action.

Deployment of Unutilised Proceeds

The unutilised IPO proceeds of Rs. 374.66 crore have been deployed across fixed deposits and current/monitoring accounts with HDFC Bank, ICICI Bank, and Axis Bank. Key deployments include a Rs. 100.00 crore fixed deposit with HDFC Bank maturing on September 20, 2026, at a return of 6.30%, and multiple fixed deposits with Axis Bank of Rs. 5.00 crore each maturing on March 19, 2027, at a return of 6.60%. A Rs. 15.00 crore deposit with ICICI Bank maturing on March 20, 2027, carries a return of 6.40%. The total market value of deployed funds, as certified by JC Bhalla & Co. dated May 04, 2026, reflects accrued earnings across all instruments.

The disclosure was submitted by Sonali Singh, Company Secretary and Compliance Officer (Membership No.: A26585), and will also be hosted on Urban Company's investor relations website.

Urban Company Limited has received a Show Cause Notice (SCN) from the Commercial Tax Officer, Guindy, South-II, Chennai South, Tamil Nadu, alleging certain discrepancies in the GST returns filed for the financial year 2022-23. The notice, received on May 04, 2026 at 05:08 p.m., was issued under Section 73 of the SGST Act, 2017. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the Show Cause Notice

The SCN has been issued by the Commercial Tax Officer requesting further clarification on the difference in turnover reported in GSTR 1 and GSTR 3B, as well as excess Input Tax Credit (ITC) claimed by the company. The total demand under the SCN covers the period April 2022 to March 2023. The key details of the notice are summarised below:

Company's Position on the Notice

Urban Company has contested the basis of the demand, stating that it has duly discharged tax on the turnover reported in its GST returns for FY 2022-23 and claimed ITC in accordance with the provisions of the applicable Act. The company contends that the Tax Officer has incorrectly considered the turnover under Section 9(5) of the CGST Act—on which tax has been discharged by the company as an e-commerce operator—as the company's own turnover.

The company has stated that it believes it has a strong case on merits, supported by the opinion of its external legal and tax advisors, and will be responding to the SCN within the timelines prescribed.

Impact Assessment

Urban Company has clarified that the aforesaid SCN will not impact the financial, operational, or other activities of the listed entity. The disclosure was signed by Sonali Singh, Company Secretary and Compliance Officer (Membership No.: A26585), and the details are also being hosted on the company's investor relations website at https://investorrelations.urbancompany.com/ .