Urban Company shares continue dream run post-listing, soar 81% from issue price in 3 days

Urban Company shares continued their dream run on Friday, surging 9.8% in intraday to hit a fresh high of Rs 186.85. This sharp move has taken the overall gains for IPO investors to 81.4% over the issue price of Rs 103.

The stock, which made its market debut on Wednesday, September 11, opened at Rs 161 on the BSE, a strong 56.3% premium over its upper price band. In just three sessions since listing, Urban Company shares have climbed another 16% from their listing price, underscoring the strong investor appetite for the newly-listed stock.

“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,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities.


He added that despite being perceived as an expensive IPO from a valuation standpoint, the offer witnessed robust investor demand, which is “well supported from a long-term investment perspective.”

Tapse further advised that “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.”

Also read: Vodafone Idea shares surge 10% as govt tells SC ‘some solution is required’ in AGR case

Urban Company is currently the only organised player in the tech-driven online home services marketplace, enjoying a leadership position across 51 cities in India, as well as in international markets like the UAE and Singapore.

Its strong brand recall and first-mover advantage position it as a preferred service provider in a largely fragmented sector.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)