SBI Mutual Fund Buys 2.13% Stake From Accel and VY Capital as Urban Company Stock Gains 4%
Shares of home services marketplace Urban Company rose more than 4% on Thursday after a block deal worth approximately Rs 428.4 crore was executed in the company’s stock.
According to data from the National Stock Exchange (NSE), around 3.15 crore shares, representing approximately 2.13% of Urban Company’s total share capital, changed hands at Rs 136 per share.
SBI Mutual Fund was reportedly the buyer in the transaction, while existing investors Accel and VY Capital were the sellers.
SBI Mutual Fund Increases Urban Company Exposure
The latest transaction marks another increase in SBI Mutual Fund’s exposure to Urban Company.
The mutual fund had acquired an additional 4% stake in the home services platform through bulk and block deals worth approximately Rs 632 crore in March 2026.
Before the latest transaction, SBI Mutual Fund held around 6.59% of Urban Company. The latest purchase is expected to further increase its ownership in the company.
The transaction comes as institutional investors continue to assess Urban Company’s growth prospects, particularly its expansion in instant home services through its InstaHelp vertical.
Accel and VY Capital Exit Part of Their Holdings
The block deal involved shares held by two existing investors, Accel and VY Capital.
Before the transaction, Accel owned approximately 6.99% of Urban Company.
VY Capital held around 12.9% through four entities Vyc11 Limited, Vyc23 Limited, Dharana Fund, L.P., and Dharanauc Limited, according to the company’s shareholding data.
The latest block transaction provides liquidity to the existing investors while bringing additional institutional ownership into the company’s shareholder base.
Morgan Stanley Upgrades Urban Company
The block deal also comes shortly after global brokerage firm Morgan Stanley upgraded Urban Company to ‘Overweight’ from its earlier ‘Underweight’ rating.
The brokerage also raised its target price significantly to Rs 165 from Rs 128, reflecting increased optimism around the company’s growth prospects.
Morgan Stanley’s upgrade followed Urban Company’s progress in its instant home services business, particularly InstaHelp, which has been scaling rapidly across major Indian cities.
Revenue Grows 44% in Q1 FY27
Urban Company reported strong revenue growth in the first quarter of FY27.
The company’s operating revenue increased 44% year-on-year to Rs 528 crore during Q1 FY27.
However, the company slipped into a loss of Rs 92 crore during the quarter as it continued investing aggressively in InstaHelp.
The quick home services business has become an important growth driver for Urban Company, offering services such as cleaning, dishwashing, laundry and meal preparation with professionals available within a short period after booking.
The company has been prioritising expansion and market penetration even as it works towards improving unit economics in the emerging category.
Urban Company Shares Gain Over 4%
Following the block transaction, investor sentiment around Urban Company strengthened.
The company’s shares rose more than 4% to around Rs 144.6 as of 11:25 AM on Thursday.
At this price level, Urban Company’s market capitalisation stood at approximately Rs 22,300 crore, equivalent to around $2.35 billion.
The stock’s movement comes amid growing investor interest in the company’s ability to scale its core home services marketplace while building InstaHelp into a significant instant-services business.
The latest institutional transaction, combined with the recent Morgan Stanley upgrade, could further keep Urban Company’s growth strategy and profitability trajectory in focus as the company continues to expand its presence in India’s rapidly evolving home services market.
