New Delhi, September 17 (HS): The Indian stock market witnessed two strong listings on Wednesday as Urban Company, a leading home and beauty services marketplace, and Shringar House of Mangalsutra, a jewellery manufacturer, made their debut, delivering solid gains to IPO investors.
Urban Company: 62% First-Day Gain
Shares of Urban Company debuted with a stellar premium of nearly 56% over the IPO issue price of Rs 103. The stock listed at Rs 161 on BSE and Rs 162.25 on NSE, before closing the session higher at Rs 167.05, translating into a 62.18% gain for IPO subscribers on day one.
The company’s Rs 1,900.24 crore IPO (open from September 10–12) was heavily oversubscribed, attracting an overall subscription of 108.98 times. The Qualified Institutional Buyers’ (QIB) portion was subscribed 147.35 times, while Non-Institutional Investors (NII) and retail segments were subscribed 77.82 times and 41.49 times respectively.
Of the issue, fresh shares worth Rs 472.24 crore were issued, while 13.86 crore shares were offered through the Offer for Sale (OFS) window. Proceeds will be used for technology investments, cloud infrastructure, office leases, marketing, and general corporate purposes.
On the financial front, Urban Company turned around from a net loss of Rs 312.48 crore in FY 2022–23 to a net profit of Rs 239.77 crore in FY 2024–25, while revenues grew at a CAGR of over 31% to reach Rs 1,260.68 crore.
Shringar House of Mangalsutra: 12% First-Day Gain
Jewellery-maker Shringar House of Mangalsutra also had a blockbuster opening, with its stock listing 14% higher at Rs 187.70 on BSE and Rs 188.50 on NSE, against the issue price of Rs 165. During the day, the share touched a high of Rs 191 and a low of Rs 182.45, before closing at Rs 184.85, giving IPO investors a 12.03% listing-day gain.
The company’s Rs 401 crore IPO was subscribed 60.29 times, after raising Rs 120.18 crore from anchor investors ahead of the offer. It included fresh shares worth Rs 2.43 crore, aimed at meeting working capital requirements and general corporate purposes.
Financially, the company’s net profit rose from Rs 23.36 crore in FY 2022–23 to Rs 61.11 crore in FY 2024–25, though reserves and surplus saw a slight dip from Rs 125.72 crore at the end of FY 2023–24 to Rs 123.72 crore in FY 2024–25.
Investor Takeaway
Both listings highlight strong investor appetite for quality IPOs in the consumer and lifestyle sector, with Urban Company rewarding investors with over 60% gains and Shringar House of Mangalsutra offering 12% profits on debut. Analysts suggest the robust response underlines confidence in domestic consumption-driven businesses.
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Hindusthan Samachar / Jun Sarkar
