Shares of Urban Company are poised for a robust stock market debut on Wednesday, with listing gains of over 50% indicated by grey market trends. The company’s initial public offering (IPO), which closed recently, received an overwhelming response, drawing subscriptions 103.63 times the issue size.
According to grey market platforms, Urban Company shares are commanding a premium of over 52%. Investorgain quoted a grey market premium (GMP) of Rs 54, implying a listing gain of 52.43% over the upper price band of Rs 103 per share. However, this is not the official listing price and can fluctuate based on the market conditions.
Urban Company’s Rs 1,900 crore IPO was a mix of a fresh issue and an offer-for-sale. The fresh issue comprised of 4.58 crore shares worth Rs 472 crore and the offer-for-sale portion saw 13.86 crore shares, amounting to Rs 1,428 crore.
The portion for retail investors was subscribed 39.25 times while the Non-Institutional Investors (NIIs) quota was subscribed 74.04 times. The highest demand came from Qualified Institutional Buyers (QIBs), who bid 140.2 times the shares reserved for them.
The company had already raised Rs 854 crore from marquee anchor investors such as SBI Funds, Monetary Authority of Singapore, HDFC MF, Fidelity Securities, Nomura, ICICI Prudential Life, SBI Life, Citigroup, and Goldman Sachs.
"Given the high subscription levels and positive sentiment, we expect a strong listing gain in the range of 40-50% or even higher, depending on market trends on listing day," said Prashanth Tapse of Mehta Equities. Tapse added that beyond the immediate listing, Urban Company offers a compelling long-term structural story and serves as a proxy for growing demand in the home services segment.