SBI Mutual Fund picks up 4% stake in Urban Company via bulk deals

SBI Mutual Fund has bought a 4% stake of home services marketplace Urban Company through bulk deals executed on Tuesday, CNBC TV-18 reported. The fund house has acquired 3.5 crore shares on the NSE, with each share priced at an average of ₹109.85 apiece, while it acquired another 2.2 crore shares on the BSE at a price of ₹109.83 per share.

There were multiple sellers, with Wellington Hadley Harbor AIV Master Investors selling 3.2 crore shares worth ₹349 crore, while DF International Partners and ABG Capital offloaded about 1.7 crore shares each, as per the report.

The selling followed the end of a six-month lock-in period for pre-IPO investors.

Urban Company's six-month lock-in ends today

The six-month lock-in period for pre-IPO investors who had invested in the company before its public listing in September 2025 ended today, making up to 94.09 crore equity shares, or 66% of the company's outstanding equity, eligible for trading, CNBC-TV18 quoted Nuvama Alternative and Quantitative Research as saying.

A lock-in period in an IPO refers to a predetermined timeframe during which certain shareholders, often including the company, promoters, and pre-IPO investors, are restricted from selling their shares in the open market.

This restriction aims to provide stability to the newly listed company's stock price and boost investor confidence during the early stages of trading.

Lock-in periods vary in duration, ranging from a few months to several years, depending on stock exchange regulations and the terms set by the company and its underwriters.

As the lock-in period expires, restricted shareholders become eligible to trade their shares in the secondary market, potentially increasing liquidity. However, there is a risk that some shareholders may immediately offload their holdings, adding downward pressure to the stock price.

Urban Company share price trend

Urban Company shares have been trending lower since listing, as they have been grappling with severe selling pressure, closing the last five months in the red, resulting in a cumulative drop of 34%.

The stock made a strong market debut, listing at ₹162.3 per share, 57% higher than its issue price of ₹103, and maintained the momentum in the subsequent sessions, reaching ₹202 per share.

However, the stock failed to continue the same momentum, and at current levels, it is down by 45.54% from its peak, yet still up by a modest 7% from its issue price.

Urban Company operates a technology-driven, full-stack online services marketplace, providing quality services across various home and beauty categories.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.