Urban Company shares fall 4% as shareholder lock-in ends. Stock now 40% down from peak

Shares of Urban Company fell nearly 6% intraday on Monday, hitting the day’s low of Rs 121.40 on the NSE as the three-month anchor lock-in ended today. With this, 41 million shares, which account for 3% of total outstanding shares, are now available for trade, according to Nuvama’s estimates.

The price action occurred amid strong volumes, with 1.2 crore shares changing hands around the closing time. The stock finally ended at Rs 124, down by Rs 4.84 or 3.76% from Friday’s closing price.

While the shares are now eligible for sale, the onus rests with investors on whether to sell them or not.


The Rs 1,900 crore initial public offering (IPO) hit the primary markets on September 10 and closed on September 12. The company had set the price band at Rs 98–Rs 103.

The stock had a strong debut and was listed at a 56% and 58% premium on the BSE and the NSE, respectively. The listing prices were Rs 161 and Rs 162.25, respectively.

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The shares of Urban Company rallied to a high of Rs 201.18 on the NSE over the next five trading sessions, and since then the stock has been on a decline. As it hit its three-month low today, it is now 40% lower from the peak, though still 20% above the issue price.

The at-home services platform had raised Rs 854 crore from anchor investors, including Singapore’s sovereign wealth fund GIC, Fidelity, Norges Bank and others.

Of its total anchor book, domestic mutual funds including SBI MF, ICICI Prudential, Nippon MF, HDFC MF and Aditya Birla Sun Life invested a total of Rs 316 crore in Urban Company.

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