Synopsis: Urban Company shares surged after SBI Mutual Fund acquired a 4% stake worth over Rs 600 crore via block deals, signalling strong institutional confidence. The rally came despite significant exits by early investors following the lock-in expiry, with demand absorbing supply. Growth remains strong, though profitability concerns persist.
The shares of this company, which is a technology-driven, full-stack online marketplace offering home and beauty services, were in momentum today after the company saw a stake increase by SBI MF via bulk deals.
With a market cap of Rs 18,200 crore, the shares of Urban Company Ltd jumped about 16% in today’s trading session and reached a high of Rs 127.30. When compared to its previous day’s closing price of Rs 109.85.
About the SBI stake Increase
Urban Company shares gained as much as 16% on March 18 after SBI Mutual Fund increased its stake in the firm through a Rs 632 crore block deal. This purchase, which represents nearly 4% of the firm’s equity, in addition to the existing 1.89% stake held by the MF as of the end of last year, indicates a high level of institutional confidence in the newly listed platform.
Shares in the firm gained as much as 16% on March 18 after the MF purchase, despite the supply pressure caused by the nearly 4.6% equity in the firm being sold in the block deal. Existing shareholders, such as DF International II Fund and Wellington Hadley Harbour, sold their entire holdings in the firm, while another existing shareholder, ABG Capital, sold almost all of its holdings, or 1.2% equity, in the firm. This indicates a clear trend of change in shareholders, with existing shareholders exiting in favour of new domestic institutional investors.
The purchase comes as the six-month lock-in period for shareholders in the firm ended, releasing nearly 66% of the outstanding equity in the firm into the hands of shareholders.
Despite the heavy selling, the stock has shown a good uptrend, which reflects the demand absorption capability of the market. The entry of a big domestic institutional investor like SBI MF has helped the market sentiment.
The post-listing journey of Urban Company has been highly volatile, as the company, which was listed at 103, immediately zoomed to 201, only to correct on concerns of profitability and increased investment in new initiatives, like Instahelp.
Financials
The revenue from operations for the company stood at Rs 383 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 288 crore, up by about 33 per cent YoY. However, the net loss stood at Rs 21 crore in Q3 FY26, down compared to the Rs 232 crore profit in Q3 FY25.
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