Shares of Urban Company surged nearly 9% after SBI Mutual Fund acquired shares worth ₹632 crore through block deals, boosting investor sentiment following recent weakness in the stock.
The buying activity coincided with the expiry of the mandatory pre-IPO lock-in period, triggering significant stake sales by early investors. Entities including DF International Partners II, ABG Capital, and Wellington Hadley Harbor Aiv Master Investors (Cayman) III collectively offloaded shares worth ₹734 crore, representing around 4.6% of the company’s equity. Notably, DF International Partners II and Wellington Hadley Harbor exited their entire holdings.
Despite the sharp rally, Urban Company’s stock performance has remained under pressure. The shares are down 16% year-to-date and have declined over the past month, trading only modestly above their IPO price of ₹103, after debuting at a strong premium in September 2025.
On the financial front, the company reported a net loss of ₹21 crore in the December quarter, compared to a profit in the year-ago period, as continued investments in its high-frequency services vertical—particularly housekeeping—impacted profitability. However, revenue from operations grew 33% year-on-year to ₹383 crore, while net transaction value rose 36%, indicating sustained demand and business expansion.
The recent block deal activity highlights a typical post-lock-in reshuffling of shareholding, where early investors exit and institutional players step in. SBI Mutual Fund’s entry at scale suggests long-term confidence in Urban Company’s growth trajectory, even as the company navigates profitability challenges amid aggressive expansion.
