Unicommerce eSolutions: Shares Soar Over 100% On Stock Market Debut Amid Strong IPO Demand

Unicommerce eSolutions made an extraordinary entrance into the stock market on August 13, with its shares debuting at ₹235 on the NSE, marking a remarkable 117.59% premium over its issue price of ₹108. Similarly, on the BSE, the stock opened at ₹230, reflecting a 112.96% premium. This stellar performance underscores the significant investor interest in the company’s Initial Public Offering (IPO), which raised ₹276.57 crore.

The IPO, which was open for subscription from August 6-8, witnessed overwhelming demand, attracting substantial attention from investors. Priced between ₹102-108 per share, the offering was oversubscribed by a staggering 168.35 times. Investors bid for an impressive 237.11 crore shares against the 1.4 crore shares available. The Non-Institutional Investors (NII) category saw the highest interest, with subscriptions reaching 252.46 times, followed by the Qualified Institutional Buyers (QIB) at 138.75 times. Retail investors also showed significant interest, with their portion being subscribed 130.99 times.

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The IPO of Unicommerce eSolutions was structured entirely as an Offer for Sale (OFS), comprising up to 2.56 crore shares with a face value of Re 1 each. Through this OFS, stakeholders AceVector Ltd and SB Investment Holdings (UK) aimed to divest a portion of their holdings in the company. Since the IPO was an OFS transaction, Unicommerce eSolutions will not receive any proceeds from the offering.

The allocation of shares in the IPO was strategically designed, reserving approximately 75% for Qualified Institutional Buyers, 10% for retail investors, and the remaining 15% for non-retail investors. The book-running lead managers for the IPO were IIFL Securities and CLSA India, with Link Intime India serving as the registrar.

About Unicommerce eSolutions

Established in February 2012, Unicommerce eSolutions operates as a Software as a Service (SaaS) platform, providing end-to-end solutions for managing e-commerce operations. The company’s software suite is designed to streamline post-purchase processes for brands, sellers, and logistics providers. Unicommerce has built a robust and growing client base in India, which includes prominent names such as Lenskart, Fabindia, Zivame, TCNS, Mamaearth, Emami, Sugar, BoAt, Portronics, Pharmeasy, GNC, Cello, Urban Company, Mensa, Shiprocket, Xpressbees, among others.

In addition to its strong presence in India, Unicommerce also serves clients across six other countries, with a particular focus on markets 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, a notable increase from ₹6.48 crore in the previous fiscal year. The company’s revenue for FY24 stood at ₹109.43 crore, up from ₹92.97 crore the previous year, indicating healthy growth.

Analysts Weigh In

Despite the impressive market debut, analysts are advising a cautious approach. The aggressive pricing of the IPO, which is reflected in the company’s high Price-to-Earnings (P/E) ratio of 84x, has raised concerns. Swastika Investmart noted that while the IPO is priced at a premium, the lack of directly comparable listed peers makes a comprehensive valuation assessment challenging. Due to these factors, they recommend that only well-informed and aggressive investors consider subscribing to the IPO for potential listing gains. Swastika Investmart has given the IPO a ‘Subscribe with caution’ rating.

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