Urban Company’s share price rose as much as 73.78% over its IPO price of ₹103 to ₹179 even as the benchmark NSE Nifty 50 traded largely flat to higher.
The stock of Urban Company Ltd. surged in a listing-day pop after raising funds in India’s most subscribed IPO so far this year.
Urban Company’s share price rose as much as 73.78% over its IPO price of ₹103 to ₹179 on the National Stock Exchange even as the benchmark NSE Nifty 50 traded largely flat to higher.
Earlier, shares of the rent-a-service company were trading at a premium of at least 60% in the grey market, according to Investorgain.com.
The high premium underscores robust demand from both institutional and retail buyers in the Urban Company IPO, which was subscribed more than 100 times last week—making it the most sought-after IPO of 2025 in India.
The surge in demand reflects investors’ growing interest in domestic-focused companies. The government, earlier this month, effected GST reforms that made soaps to small cars cheaper by at least 10 percentage points.
Urban Company provides services central to India’s rapid urbanisation, and demand is set to grow as cities expand and nuclear families rise, Astha Jain, an analyst at Hem Securities Ltd., told Bloomberg. Its overseas presence, where demand is even larger, has further fuelled strong investor interest, she said.
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The strong debut by Urban Company could reinvigorate India’s IPO market, which has so far trailed last year’s record $21 billion in fundraising. However, investment bankers anticipate a busy close to the year, including IPOs from Tata Capital Ltd., Billionbrains Garage Ventures Ltd. (Groww), and the Indian unit of South Korea’s LG Electronics Inc.
The article originally appeared on Hindustan Times
