Today marks the final day for subscription for three high-profile IPOs: Dev Accelerator, Urban Company, and Shringar House of Mangalsutra. All three have generated strong buzz in the grey market, a sign that investors expect positive listing performance. But beyond the immediate potential gains, how do their business fundamentals, growth prospects, and risks stack up? In this article, we dissect their GMPs, what drives them, and which IPO may fit which kind of investor.
What is GMP & Where Each IPO Stands
Grey Market Premium (GMP) is the amount above the issue price that unlisted shares are trading for in unofficial markets—often seen as a barometer of listing expectations.
| IPO | Approx GMP (%) / ₹ | Key Signals |
|---|---|---|
| Dev Accelerator | ~13% above issue price | Strong subscription (16× by Day 2), strong retail interest. Suggests expectation of decent listing pop. |
| Urban Company | GMP ~35–40% | Big IPO, strong brand / market footprint; investors expect growth premium. |
| Shringar House of Mangalsutra | ~16-18% GMP; around ₹30 above cap price | Substantial demand, especially among retail; stable consumption good, but sensitive to gold / bullion cycles. |
Business Profiles & Future Prospects
Dev Accelerator
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What it does: Flexible workspace provider (“workspace-as-a-service”), with different asset acquisition models such as leases and revenue share.
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Strengths: Growth across Tier-1 & Tier-2 Indian cities, increasing seat utilisation, and overseas expansion with its first project in Sydney.
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Challenges: High fixed costs, intense competition in flexible workspace, dependency on real estate cycles. Valuations appear steep with very high P/E multiples.
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Future outlook: If real estate demand recovers, flexible workspaces may see secular growth from hybrid working and smaller rental office demand. Near-term gains depend heavily on listing premium and sentiment.
Urban Company
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What it does: Marketplace for home services—cleaning, repairs, beauty, and also products under its “Native” brand.
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Strengths: Large customer base, brand recognition, and a big addressable market in India’s unorganised home-service sector.
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Challenges: High valuations, profitability still a few years away, and risks of competition, delivery logistics, and quality control.
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Future outlook: Best for long-term investors. If it manages to scale while improving margins, Urban Company could see significant growth.
Shringar House of Mangalsutra
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What it does: Jewellery manufacturer specialising in mangalsutras, catering to retailers, wholesalers, and corporates.
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Strengths: A consumption-driven play rooted in cultural demand, with growing market penetration and strong anchor investor support.
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Challenges: Margin pressures from gold price volatility, regulatory issues, and competition.
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Future outlook: Offers stability and conservative growth. For investors seeking steady earnings rather than explosive returns, this may be an attractive choice.
Risks to Keep in Mind
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Grey market premiums can be volatile; actual listing prices may differ.
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Valuations for all three are high; corrections are possible if earnings disappoint.
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Sector risks: real estate slowdown for Dev Accelerator; gold price swings for Shringar; margin pressure and competition for Urban Company.
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Macroeconomic factors like interest rates, inflation, and consumer sentiment also influence performance.
Which IPO Might Suit You?
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Looking for short-term listing gains: Dev Accelerator may deliver a strong upside on listing. Urban Company also carries potential, but with higher risk.
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Long-term growth and brand play: Urban Company offers the biggest runway, with scope to diversify and scale.
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Stability & conservative investor: Shringar House of Mangalsutra is better suited for those preferring stable, traditional businesses.
Conclusion
All three IPOs closing today show promising GMPs and strong investor interest. The choice depends on your risk appetite and investment horizon:
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For quick listing gains, Dev Accelerator looks attractive.
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For future growth and brand-driven expansion, Urban Company is the bet.
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For stability and cultural relevance, Shringar House of Mangalsutra stands out.
Each carries risks, but also unique opportunities, reflecting the diversity of India’s growing capital market.
