Urban Company Shares Jump 18% To ₹130 After ₹632 Crore SBI MF Deal, Stock Rebounds Despite Recent 8% Monthly Decline

Mumbai: Shares of Urban Company Ltd. saw a sharp rise of around 18 percent on March 18, touching about Rs 130.11. The sudden jump came after a major investment by SBI Mutual Fund (SBI MF), which boosted investor confidence in the company.

This buying activity happened through a block deal on March 17, where large quantities of shares were traded between big investors.

SBI MF Increases Stake

SBI Mutual Fund bought shares worth Rs 632.2 crore, which is nearly 4 percent of Urban Company’s total equity. Before this deal, SBI MF already held a 1.89 percent stake in the company as of December 31.

With this fresh purchase, SBI MF has significantly increased its presence, showing strong belief in the company’s future growth.

Major Shareholder Exit

At the same time, some existing investors exited the company.

DF International II Fund and Wellington Hadley Harbor sold their entire stakes

ABG Capital reduced its holding by selling 1.2 percent stake (about 1.74 crore shares)

In total, nearly 4.6 percent of Urban Company’s equity changed hands during this block deal.

Lock-in Period Ends, Shares Freed

This large transaction happened just after the six-month lock-in period ended, allowing early investors to sell their shares.

According to Nuvama Alternative & Quantitative Research, about 940.9 million shares (66 percent of total equity) became eligible for trading after the lock-in expired. This created a big opportunity for both buyers and sellers.

Stock Journey Since Listing

Urban Company got listed in September last year at an IPO price of Rs 103 per share. Soon after listing, the stock almost doubled and reached a high of Rs 201.

However, the rally did not last long. Concerns about profitability and increased spending on its Instahelp service pulled the stock down. It even went below its IPO price for a short time.

Recent Performance

Even after today’s strong rally, the stock is still down about 8 percent in the last one month.

The latest investment by SBI MF may help improve market sentiment, but investors will continue to watch the company’s growth and profitability closely.

Disclaimer: This article is for informational purposes only and not investment advice. Investors should consult financial advisors before making decisions. Stock market investments are subject to risks, including price volatility and losses.