Urban Company IPO Grey Market Premium Surges, Signaling Strong Investor Interest
Urban Company's grey market premium has doubled from ₹10 to ₹28 in six days, indicating potential listing gains of 27.18% over the proposed issue price of ₹103. The IPO, set for September 10-12, includes a fresh issue of ₹472 crore and an offer for sale of ₹1,428 crore. The company reported revenue of ₹1,144 crore, a 38% year-over-year growth, and operates in 51 cities across India, UAE, and Singapore. The Indian home services market is projected to grow from $59 billion in 2024 to $97 billion by 2029. While some experts consider the IPO expensive at 12 times earnings, others view it as suitable for aggressive long-term investors due to the company's strong brand presence.
*this image is generated using AI for illustrative purposes only.
Urban Company, a leading home services platform, is gearing up for its Initial Public Offering (IPO) with growing enthusiasm in the grey market. The company's grey market premium has seen a significant uptick, more than doubling from ₹10 to ₹28 in just six days. This surge indicates potential listing gains of 27.18% over the proposed issue price of ₹103, reflecting strong investor interest ahead of the IPO launch.
IPO Details
The Urban Company IPO is scheduled to open for subscription from September 10 to September 12. The offering comprises:
- A fresh issue of ₹472 crore
- An offer for sale of ₹1,428 crore
Financial Performance
Urban Company has demonstrated robust financial growth:
- Revenue: ₹1,144 crore (38% year-over-year growth)
- Net Profit: ₹240 crore (including ₹211 crore deferred tax credit)
- Pre-tax Profit: ₹28 crore
Market Presence and Growth Potential
Urban Company has established a strong presence in the home services sector:
- Operations across 51 cities in India, UAE, and Singapore
- Completed over 97 million service orders to date
The Indian home services market presents significant growth opportunities:
| Year | Market Value |
|---|---|
| 2024 | $59 billion |
| 2029 | $97 billion |
Expert Opinions
Financial experts have weighed in on the Urban Company IPO:
- The IPO is priced at 12 times earnings, which some consider expensive for short-term investors
- However, it may be suitable for aggressive long-term investors due to the company's strong brand presence in the home services sector
Investor Considerations
Potential investors should note:
- The surge in grey market premium suggests high demand, but it's not a guaranteed indicator of post-listing performance
- The company's strong revenue growth and market presence are positive factors
- The profitability picture is complex, with a significant portion of net profit attributed to deferred tax credit
As Urban Company prepares to go public, investors will be closely watching its performance in the primary market and its potential to capitalize on the growing home services sector in India and beyond.
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