Urban Company shares fall up to 5% after equity worth ₹700 crore frees up for trading

Shares of Urban Company Ltd., the newly-listed home services provider, fell as much as 4.5% on Thursday, October 16, as its one-month shareholder lock-in period comes to an end.

A day ahead of the shareholder lock-in ending, the Urban Company stock had its second-best day in its short trading history, ending with gains of over 11%.

According to Nuvama Alternative and Quantitative Research, as many as 4.15 crore shares of Urban Company will free up for trade on Thursday when the shareholder lock-in ends.

The number of shares that will free up for trade amount to 3% of the company's outstanding equity.

Based on Wednesday's closing price, the value of shares that will free up for trading comes up to nearly ₹700 crore.

It must be specified that the shareholder lock-in ending does not mean that all the shares will be sold in the open market, but they will only become eligible to be traded.

Urban Company became one of the most successful listings of 2025, having listed at a significant premium to its issue price of ₹103 and going on to make a post-listing high of ₹201 in just a few days, which is nearly double of its issue price. However, the stock has corrected from those levels.

The five-day losing streak preceding Wednesday's upmove led to the stock falling below its listing price of ₹162.25. It is only after the gains seen in yesterday's trading session that the stock managed to close above its listing price.

As many as 3.2 crore shares of Urban Company changed hands on Wednesday, which is the first instance in the last nine trading sessions that more than 1 crore shares of the company were traded in a single session. 42 lakh of those shares were marked for delivery.

Shares of Urban Company Ltd. are trading 3.5% lower on Thursday at ₹158.4. The stock is back below its listing price.