What You Must Know About Unicommerce eSolutions IPO: Price Band ₹102 to ₹108 Per Share

About Unicommerce eSolutions Limited

Unicommerce eSolutions Limited, founded in February 2012, is a SaaS platform specializing in e-commerce operations management for brands, sellers, and logistics providers. The company offers software solutions for warehouse and inventory management, multi-channel order management, and omnichannel retail management. As of 31st March 2024, Unicommerce has 101 logistics partner integrations, 11 ERP and POS integrations, and has processed 791.63 million order items. It is integrated with 131 marketplaces and web stores, serving notable clients like Lenskart, PharmEasy, Mamaearth, and Sugar Cosmetics. The company has expanded internationally, with 43 enterprise clients in Southeast Asia and the Middle East.

The Objective of the Issue

• It's important to note that Unicommerce eSolutions Limited will not receive any proceeds from the IPO.

• The offer is entirely an Offer for Sale (OFS) by existing shareholders.

• The Selling Shareholders will receive all the proceeds from the IPO.

• Proceeds will be distributed proportionately to the Offered Shares sold as part of the offer.

Highlights of the Unicommerce eSolutions IPO

Unicommerce eSolutions IPO will be listed on both BSE and NSE. Here are the key details of the IPO:

• Unicommerce eSolutions IPO is a book-built issue of ₹276.57 crores. The issue is entirely an offer for the sale of 2.56 crore shares.

• Unicommerce eSolutions IPO opens for subscription on 6th August 2024 and closes on 8th August 2024. The allotment for the Unicommerce eSolutions IPO is expected to be finalised on Friday, 9th August 2024. The IPO will list on BSE and NSE, with a tentative listing date fixed as Tuesday, 13th August 2024.

• Unicommerce eSolutions IPO price band is set at ₹102 to ₹108 per share. The minimum lot size for an application is 138 Shares. The minimum amount of investment required by retail investors is ₹14,904. The minimum lot size investment for sNII is 14 lots (1,932 shares), amounting to ₹208,656; for bNII, it is 68 lots (9,384 shares), amounting to ₹1,013,472.

• IIFL Securities Ltd and CLSA India Private Limited are the book-running lead managers of the Unicommerce eSolutions IPO. Link Intime India Private Ltd is the registrar for the issue.

Unicommerce eSolutions IPO: Key Dates

The Unicommerce eSolutions IPO opens on Tuesday, 6th August 2024 and closes on Thursday, 8th August 2024. The bid dates are from 6th August 2024, at 10:00 AM to 8th August 2024, at 5:00 PM. The cut-off time for UPI mandate confirmation is 5 PM on the issue closing day, 8th August 2024.
 

Unicommerce eSolutions IPO Issue Details/ Capital History

Unicommerce eSolutions IPO is set to raise ₹276.57 crore through Initial Public Offering (IPO). The issue comprises 25,608,512 equity shares with a face value of ₹1 each, priced between ₹102 and ₹108 per share. The Unicommerce eSolutions IPO will open for subscription on 6th August 2024 and close on 8th August 2024. Investors can apply for a minimum of 138 shares.

The company’s shares will be listed on both the BSE and NSE post-issue. IIFL Securities Ltd and CLSA India Private Limited are the book-running lead managers, while Link Intime India Private Ltd is the registrar.

IPO Allocation and Minimum Investment Lot Size

The breakdown of the overall IPO allocation to various categories is as follows:

The minimum lot size for IPO investment is 138 shares. Retail investors can invest a minimum of ₹14,904 (138 x ₹108 per share at the upper price band) in the IPO. The maximum that retail investors can invest is ₹193,752 (1794 x ₹108). The table below shows the break-up of lot sizes for different categories:

SWOT Analysis: Unicommerce eSolutions Limited

Strengths

• Unicommerce dominates the Indian e-commerce enablement SaaS market, indicating a strong market share and customer base.

• The company's diverse clientele across various industries reduces reliance on any specific sector, ensuring a stable revenue stream.

• Unicommerce's SaaS-based business model allows for efficient scaling, increased customer acquisition, and improved profitability.

• A robust technology platform underpins the company's ability to manage complex e-commerce operations effectively.

Weaknesses

• Intense competition from new entrants and existing players poses a significant challenge to Unicommerce's market position.

• Reliance on a limited number of large clients could expose the company to revenue fluctuations.

• Economic downturns can adversely impact e-commerce spending, affecting Unicommerce's revenue and profitability.

Opportunities

• Expanding the product portfolio to include complementary services can attract new customers and increase revenue streams.

• Unicommerce can explore new geographical markets to tap into untapped growth potential.

• Strategic partnerships with e-commerce platforms, logistics providers, and payment gateways can enhance market reach and service offerings.

Threats

• Rapid technological advancements in the e-commerce industry require continuous investment in research and development to stay competitive.

• Protecting sensitive customer data from cyber threats is crucial for maintaining customer trust and complying with regulations.

• Economic uncertainties can impact consumer spending, demand for e-commerce services, and Unicommerce revenue.
 

Financial Highlights: Unicommerce eSolutions Limited

The table below presents the key financials of Unicommerce eSolutions IPO for recent periods:

Source: RHP Filed with SEBI

Unicommerce eSolutions has demonstrated significant revenue growth over the past three fiscal years. Revenue increased from ₹613.6 lakhs in Fiscal 2022 to ₹929.7 lakhs in Fiscal 2023 and further to ₹1,094.3 lakhs in Fiscal 2024. This steady growth reflects the company's expanding customer base and increasing market penetration.

The Profit After Tax (PAT) has shown remarkable improvement, rising from ₹60.1s lakh in Fiscal 2022 to ₹64.8 lakhs in Fiscal 2023 and reaching ₹130.8 lakhs in Fiscal 2024. This upward trend in profitability indicates efficient cost management and successful operations scaling.

The EBITDA margin has increased substantially, from 8.54% in Fiscal 2022 to 7.25% in Fiscal 2023, and then significantly jumped to 13.92% in Fiscal 2024. This improvement highlights the company's enhanced operational efficiency and ability to generate higher earnings before interest, taxes, depreciation, and amortisation.

The company's total assets have grown significantly, from ₹590.34 lakhs in Fiscal 2022 to ₹817.40 lakhs in Fiscal 2023 and further to ₹1,091.13 lakhs in Fiscal 2024. This asset growth reflects the company's ongoing investments in technology, infrastructure, and market expansion.

Unicommerce eSolutions's net worth increased from ₹413.7 lakhs in Fiscal 2022 to ₹518.9 lakhs in Fiscal 2023 and to ₹689.1 lakhs in Fiscal 2024. The rising net worth underscores the company's ability to retain earnings and strengthen its financial position yearly.