The shares of Unicommerce are generating a lot of excitement in the unlisted market as they prepare to go public on Tuesday. Analysts had anticipated this, and the stock is currently trading at a 64% premium over its IPO price.
The company set the IPO price between Rs 102 and Rs 108 per share, but they are allotting shares at the top of this range. While this premium in the grey market is a good sign, it’s important to remember that these numbers can change quickly and only indicate how investors feel about the stock before it starts trading publicly.
The IPO was a huge success, with the offer fully subscribed more than 160 times, thanks to strong interest from both individual and institutional investors. Since this IPO is an offer for sale, the company won’t receive any of the money raised. Analysts have recommended investing in the IPO to take advantage of the potential price increase when the stock lists, despite its high price-to-earnings ratio of 84x. Without similar companies on the stock exchange, it’s tough to compare its valuation.
Unicommerce eSolutions provides software services to help manage all aspects of e-commerce operations for brands, retailers, and logistics providers. Their clients include well-known names in India such as Lenskart, Fabindia, and Mamaearth, as well as others like Urban Company and Shiprocket. The company also has clients in six other countries, mainly in Southeast Asia and the Middle East.
In the financial year 2024, Unicommerce’s revenue increased by 14% to Rs 103 crore, and its net profit jumped from Rs 6.4 crore to Rs 13 crore. IIFL Securities and CLSA India are the main managers for this IPO, and Link Intime India is handling the offer’s registration.
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