Urban Company shares list at 58% premium

Urban Company shares started trading on Indian exchanges on Wednesday, listing at a premium over their issue price of Rs 103. The scrip listed 57.52% higher at Rs 162.25 apiece on the NSE, and 56.3% higher at Rs 161 per share on the BSE.

On NSE, the counter climbed to Rs 179 per share in the first few minutes of trading, which is 74% higher than the IPO price. The company’s market capatlisation stood at Rs 24,770.74 crore as of 10:07 am.

Using the IPO proceeds

As per the draft red herring prospectus (DRHP) filed by the company, this is how Urban Company will deploy the Rs 472 crore from the fresh issue:

• Rs 190 crore for new technology development and cloud infrastructure;
• Rs 70 crore on office leases;
• Rs 80 crore on marketing activities;
• A portion will be spent on general corporate purposes.

Urban Company FY25 Financials

Urban Company on June 18 reported a 38% increase in its operating revenue for 2024-25 to Rs 1,144 crore. The platform swung into the black, posting a net profit of Rs 240 crore.

The turnaround came on the back of a Rs 211 crore deferred tax credit. However, even on a pre-tax basis, the company reported a profit of Rs 28 crore.

In 2024, the company had reported a net loss of Rs 93 crore, down from Rs 312 crore in the previous financial year. Its operating revenue was at Rs 827 crore.