Urban Company shares made a stellar debut on the stock exchanges on Wednesday, listing at more than 57% above their issue price. On the NSE, the stock opened at Rs 162.25 per share, marking a 57.52% premium to its IPO price of Rs 103. The shares settled 64% higher at Rs 169 apiece on the first day of trading, with its market capitalisation (m-cap) climbing to Rs 24,267 crore.
The strong debut was accompanied by a broader rally in the equity market which ended higher for the second straight session on Wednesday with the Nifty closing above 25,300. Renewed India-US trade talks and the expectation of a Fed rate cut added fuel to the rally. At close, the Sensex was up 313.02 points or 0.38% at 82,693.71, and the Nifty was up 91.15 points or 0.36% at 25,330.25.
Urban Company’s debut marks one of the best mainboard listings of 2025, breaking the listing day gain set by Aditya Infotech, which ended 60.74% higher over its IPO price on its maiden day. So far in 2025, Highway Infrastructure Ltd has made the strongest debut with its shares gaining 72.5% on day 1. Quadrant Future Tek, GNG Electronics, and Stallion India are other IPOs that gave stellar returns on their debut.
Urban Company, the app-based beauty and home services platform, was poised for a robust stock market debut as its shares were trading at over a 50% premium in the unofficial grey market before the listing. The company’s Rs 1,900 crore initial public offering (IPO), which closed recently, received an overwhelming response, drawing subscriptions 103.63 times the issue size.
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. Shivani Nyati, Head of Wealth at Swastika Investmart, said those who received Urban Company’s share allotment in the IPO would consider booking partial profit and holding the rest for long-term gains with a stop loss of Rs 120.
The conservative approach comes amid a few analysts calling the issue expensive and raising concerns given the company had reported net losses and negative operating cash flows in the past. Further, poor performance of many stocks after a record-breaking debut in recent years could raise concerns among investors.
