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Synopsis : The Rs 276.57 crore IPO of Unicommerce eSolutions has opened for subscription, with shares offered in the range of Rs 102-108 per share. The SaaS platform, backed by Kunal Bahl, serves as a critical infrastructure for e-commerce operations. Despite the high valuation, several brokerage firms have given a "Subscribe" rating, citing the company’s strong market position and growth potential. However, investors are advised to consider the risks, including competitive pressures and seasonal business fluctuations, before subscribing.
The much-anticipated Rs 276.57 crore Initial Public Offering (IPO) of Unicommerce eSolutions has opened for subscription from August 6 to August 8. The SaaS platform, backed by Kunal Bahl, is offering its shares within the price band of Rs 102-108 per share, with a minimum lot size of 138 equity shares.
Company Background and IPO Details
Unicommerce eSolutions, established in February 2012, is a leading Software-as-a-Service (SaaS) platform specializing in managing e-commerce operations for brands, sellers, and logistics providers. The IPO is entirely an Offer for Sale (OFS), with up to 2,56,08,512 equity shares being offloaded by its promoter entity, AceVector (formerly Snapdeal), and investor SB Investment Holdings. The company will not receive any proceeds from this IPO.
Ahead of its IPO, Unicommerce raised Rs 124.5 crore from 11 anchor investors, including prominent names like Morgan Stanley, Aditya Birla Sun Life Trustee, and SBI Mutual Fund, by allocating 1,15,23,831 shares at Rs 108 per share.
Product Offerings and Business Growth
Unicommerce offers a wide range of products, including a warehouse and inventory management system, multi-channel order management, omnichannel retail management, and post-order logistics tracking. By March 31, 2024, the company had processed 791.63 million order items through its Order Management System (OMS) and had established integrations with 131 marketplaces and web store software.
For the fiscal year ending March 31, 2024, Unicommerce reported a net profit of Rs 13.08 crore, a significant increase from Rs 6.48 crore in the previous year. Revenue also rose to Rs 109.43 crore in FY24 from Rs 92.97 crore in FY23.
IPO Allocation and Listing
The IPO has reserved 75% of the net offer for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 10% for retail investors. IIFL Securities and CLSA India are the book-running lead managers for the issue, while Link Intime India serves as the registrar. Shares of Unicommerce are expected to be listed on both BSE and NSE, with August 13 tentatively set as the listing date.
Brokerage Opinions
Several brokerage firms have shared their perspectives on the Unicommerce eSolutions IPO:
Swastika Investmart: Rated as "Subscribe with Caution," noting the company’s strong market position but highlighting challenges like competitive pressures and premium valuation.
Arihant Capital Market: Recommended "Subscribe," emphasizing the company's robust presence in the Indian market and scalable business model.
StoxBox: Also rated "Subscribe," acknowledging the high valuation but considering the company's strong business performance as an opportunity for medium to long-term growth.
Marwadi Financial Services: Endorsed a "Subscribe" rating, highlighting Unicommerce's position as the largest e-commerce enabled SaaS products platform in India.
Ventura Securities: Rated "Subscribe," praising the company as the only profitable entity among the top five players in FY23 and its crucial role in the e-commerce supply chain.
Disclaimer : The information provided in this article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
