NEW DELHI: India’s largest tech-enabled home services marketplace, Urban Company, made a blockbuster debut on Dalal Street on Wednesday.The stock listed at Rs 162.25 on NSE, a 57.5% premium over its IPO price of Rs 103. On BSE, the stock opened at Rs 161, up 56.3%, before rallying further to Rs 179, a gain of nearly 74%. The company’s market valuation touched Rs 24,216 crore.The company’s Rs 1,900-crore IPO, priced at Rs 98–103 per share, had received massive investor interest, being subscribed more than 103 times overall, the highest subscription seen in India this year.The qualified institutional buyers (QIB) led the interest with bids at 147 times, followed by Non-Institutional Investors at 77 times and retail investors at 41 times. Ahead of the listing, the grey market premium (GMP) of around Rs 52 per share had already hinted at a likely strong debut near Rs 155, reflecting strong investor confidence in the company’s growth prospects.
What investors should know?
Analysts recommend booking partial profits while holding the remaining shares with a long-term perspective. Prashanth Tapse, Senior VP (Research) at Mehta Equities, said Urban Company’s debut exceeded expectations and highlighted its long-term potential.“Strong listing was above our expectations; despite listing pop, Urban Company presents a compelling long-term structural story and can serve as a proxy for the growing demand in the home services segment across its key geographies,” Tapse told ET.While many considered the IPO expensive on valuations, Tapse said the overwhelming investor demand reflects strong confidence in the company’s growth prospects.“Accordingly, we continue to recommend allotted investors who can take near-term risk to HOLD the stock from a long-term investment perspective, keeping in mind the inherent market risks. For non-allotted investors, a ‘Wait and Watch’ approach is advisable to assess any post-listing dip as a potential entry point,” Tapse explained.She also advised investors on profit strategy, saying, “For those who received allotment, consider booking partial profit and hold the rest for long-term gains with a stop loss of Rs 120.”Founded in 2014, Urban Company provides a broad range of home services — from beauty and wellness to appliance repair, cleaning, and home maintenance, and has established itself as a market leader in the segment.Founded in 2014, Urban Company provides a broad range of home services — from beauty and wellness to appliance repair, cleaning, and home maintenance, and has established itself as a market leader in the segment.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
