Unicommerce eSolutions had an impressive debut on the stock market today, August 13. The shares opened at ₹235 on the NSE, which is 117.59% higher than the IPO price of ₹108. On the BSE, the shares listed at ₹230, a 112.96% premium.
The company’s initial public offering (IPO) raised ₹276.57 crore and was open for subscription from August 6-8, with a price range of ₹102-108 per share.
Investor interest was extremely high, with the IPO being oversubscribed 168.35 times. A total of 237.11 crore shares were bid for, compared to the 1.4 crore shares available. The Non-Institutional Investors category saw the highest subscription at 252.46 times, followed by the Qualified Institutional Buyers at 138.75 times, and Retail Investors at 130.99 times.
Unicommerce’s IPO was entirely an Offer for Sale (OFS) of up to 2.56 crore shares, with a face value of Re 1 per share. Through this OFS, shareholders AceVector Ltd and SB Investment Holdings (UK) are reducing their stakes. Since this is an OFS, Unicommerce eSolutions will not receive any money from the IPO.
The IPO shares were allocated as follows: 75% to qualified institutional buyers, 10% to retail investors, and 15% to non-retail investors. IIFL Securities and CLSA India were the lead managers, with Link Intime India acting as the registrar.
About Unicommerce
Founded in February 2012, Unicommerce eSolutions is a Software as a Service (SaaS) platform that helps brands, sellers, and logistics providers manage their e-commerce operations. The company offers a range of software products that simplify the post-purchase process in e-commerce.
Unicommerce serves a large and growing client base in India, including well-known companies like Lenskart, Fabindia, Zivame, Mamaearth, and BoAt. They also have clients in six other countries, particularly in South East Asia and the Middle East.
For the fiscal year ending March 31, 2024, Unicommerce reported a net profit of ₹13.08 crore, up from ₹6.48 crore the previous year. The company’s revenue for FY24 was ₹109.43 crore, an increase from ₹92.97 crore the year before.
Analysts Suggestion
Analysts have suggested that aggressive investors may consider subscribing to the IPO for potential short-term gains. However, Swastika Investmart pointed out that the IPO is priced at a high valuation with a Price-to-Earnings (P/E) ratio of 84x. Without comparable companies in the market, it’s hard to assess the valuation fully. They advised a cautious approach, recommending that only informed investors should participate in the IPO for potential gains, and gave it a ‘Subscribe with caution’ rating.
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