Acceleration and Elevation will receive huge returns on Dalal Street from the Urban Company's IPO.

An important milestone for the Gurugram-based home services market and a significant payout for its investors are anticipated from Urban Company's Rs 1,900 crore IPO. The company is worth about Rs 15,000 crore ($1.7 billion) at the highest price range of Rs 103 per share. This gives its initial supporters multi-bagger returns while providing late-stage funds with large liquidity.At 10.84%, or around Rs 1,626 crore, Elevation Capital owns the single-largest institutional position. The fund is resting on a 19x paper return, with an average purchase cost of Rs 5.39 per share. Accel India owns Rs 1,576 crore, or 10.51% of the company. According to DRHP, the venture firm is the largest winner by multiples with a 28x return, while having an average CoA of only Rs 3.61 per share.Strong returns will also be made by Vy Capital, which made an investment later at a CoA of Rs 20.4. With a 5x return, its 9.18% stake is equivalent to roughly Rs 1,377 crore. The respective 6.8% shares held by Steadview Capital and Prosus will be valued at around Rs 1,020 crore. They rank among the biggest benefactors on paper due to the sheer value of their holdings, even if their entrance costs are not revealed in the DRHP.Tiger Global's 4.73% stake, in stark contrast, is worth almost Rs 710 crore. The New York-based investor will only receive a 70% return, though, which is small in comparison to the early backers, given the average entry fee of Rs 60.25 a share.

The forthcoming offering expands on pre-IPO secondary deals worth Rs 1,395 crore that were completed between late 2024 and early 2025. About Rs 780 crore worth of shares were sold by the company's founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, mostly to pay off debt from a partially completed rights issue in 2019. Prior to the public offering, early investors Accel, Bessemer, and Tiger Global also sold shares to Prosus, Vy Capital, and others for a total of Rs 615 crore.Earlier this week, SEBI approved the company's first public offering (IPO). In terms of finances, Urban Company's revenue increased by 38% year over year to Rs 1,144 crore in FY25, with profits of Rs 28.5 crore. With the promoters not taking part in the share sale, the IPO will see a new issue of Rs 429 crore and an offer for sale of Rs 1,471 crore. As one of the first significant consumer internet listings in FY26, Urban Company's market debut will be closely observed.