One IPO, 57% returns on listing day and a decision to be made! If you were among the lucky ones to get your hands on Urban Company shares during the IPO, you're sitting on a sweet pile of profits.
The app-based home and beauty services platform listed at a premium of over 57% to its issue price of ₹103, rewarding shareholders with strong listing gains.
Urban Company: Blockbuster Debut
The ₹1,900-crore IPO was oversubscribed a massive 103 times, reflecting strong investor demand. On listing day, Urban Company shares opened at ₹161 on the BSE and ₹162.25 on the NSE, compared to the issue price of ₹103. At its peak, the stock jumped nearly 74% to ₹179, giving the company a market valuation of more than ₹24,000 crore.
What the Funds Will Fuel
According to the company, proceeds from the IPO will be used for technology development and cloud infrastructure, lease payments for offices, marketing activities, and general corporate purposes.
The Business Edge
Urban Company operates a technology-driven, full-stack marketplace for home and beauty services, from salon treatments and grooming to cleaning and repairs. The company is betting on India’s booming demand for convenient, quality-driven services.
Expert Opinions: Sell or Hold?
Now that the stock has surged, investors are weighing whether to lock in profits or hold for the long haul.
- Mehta Equities recommends holding with a long-term view, citing strong market potential.
- Swastika Investmart suggests booking partial profits while keeping the rest for long-term gains.
- Lemonn Markets advises short-term investors to exit, while long-term investors can consider adding more on dips.
The Valuation Question
Despite the excitement, some analysts warn that Urban Company’s current valuations already reflect ambitious growth expectations. To justify its soaring stock price, the company will need to consistently deliver on execution, profitability, and cash flow.
What’s Next for Investors?
Urban Company’s strong debut highlights investor appetite for new-age service platforms. But with the stock already richly valued, the decision now rests on risk appetite: take quick gains, or ride the long-term growth story.
