Urban Company Stock Surges 4% on SBI MF’s Rs 428 Cr Block Deal
By ThePip Desk
Urban Company shares jumped 4% after SBI Mutual Fund acquired a 2% stake for Rs 428 crore in a block deal, increasing its holding to approximately 8%.
Urban Company shares climbed 4% on Thursday after SBI Mutual Fund (SBI MF) acquired a significant 2% stake through a pre-market block deal. This transaction, valued at approximately Rs 428 crore, involved 3.15 crore shares.
Significant Stake Acquisition
The deal saw SBI MF increase its investment in the company, purchasing shares at an average price of Rs 136 per unit. This price represented a 6% discount to the prevailing market price at the time of execution.
- Buyer: SBI Mutual Fund (SBI MF)
- Reported Sellers: Early investors Accel and Vy Capital (Dharana Capital)
- Previous SBI MF Holding (December 2025): 1.89%
- Previous SBI MF Holding (March 2026): 5.9%
- Expected SBI MF Holding (Post-deal): Around 8%
This substantial acquisition follows a recent positive re-evaluation from a major global financial institution.
Analyst Sentiment and Q1 Performance
Morgan Stanley recently upgraded Urban Company’s rating from ‘Underweight’ to ‘Overweight’, simultaneously raising its target price to Rs 165 from Rs 128. The company’s latest quarterly report outlined varied performance metrics.
- Q1 Revenue Growth (YoY): 44%, reaching Rs 528.34 crore
- Net Loss: Expanded to Rs 92 crore
- India Business Revenue Growth (YoY): 31% with improved margins
- Native Business Growth: 60%, showing narrowing EBIT loss
- International Revenue Surge: 82%, turning EBIT-positive
Management’s strategy continues to prioritize market leadership and growth, even as EBITDA losses increased, indicating a focus beyond immediate profitability.
Market Position and Analyst Consensus
The InstaHelp segment also demonstrated rapid scaling, with orders increasing 43% sequentially. Despite a decline in average order value, the EBITDA loss per order narrowed.
Current analyst recommendations for Urban Company are mixed, with two ‘Buy’ ratings, two ‘Sell’ ratings, and three ‘Hold’ ratings. The stock closed 3.75% higher at Rs 144.26 on Thursday, trading below its post-listing high but recovering from its recent lows.