Unicommerce eSolutions IPO Listed at 117% Premium Above Issue Price

Unicommerce eSolutions IPO made a remarkable debut on the stock market on Friday, August 13, 2024, with its shares listing at ₹108 per share, hitting the upper end of the IPO price band. The company's entry into the market was marked by strong demand across all investor categories, culminating in an overall subscription rate of 168.35 times. This overwhelming response, particularly from non-institutional investors who subscribed 252.46 times, underscores the significant confidence in the company’s business model and prospects.

Unicommerce eSolutions IPO was structured entirely as an Offer for Sale (OFS) involving the sale of 25,608,512 equity shares. This move allowed Unicommerce eSolutions to mobilise ₹276.57 crores, which will go to the selling shareholders. The robust subscription rates reflect a high level of investor interest despite the absence of any fresh issue of shares, emphasising the market's trust in the company’s growth potential.

Unicommerce eSolutions Limited, a SaaS platform, was founded in February 2012 and oversees e-commerce operations for brands, sellers, and logistics companies. The company provides various software solutions to assist companies in effectively managing their online storefronts after purchase. Some of these goods include a seller management panel for marketplaces, a multi-channel order management system, an omnichannel retail management system, a warehouse and inventory management system, post-order services for logistics tracking and courier allocation, and a payment reconciliation system.

The business integrates a wide range of partners and technologies. As of March 31, 2024, this comprised 11 integrations with ERPs, POS systems, and other systems and 101 integrations with logistics partners.

Financially, Unicommerce eSolutions has exhibited strong performance. For the fiscal year ending March 2024, the company recorded a revenue growth of 17.71%, increasing from ₹92.97 crores in FY23 to ₹109.43 crores in FY24. The profit after tax (PAT) more than doubled, rising by 101.95% from ₹6.48 crores to ₹13.08 crores during the same period. These figures highlight the company’s ability to capitalise on the growing e-commerce sector and maintain profitability.

Investor interest was extreme among non-institutional investors, with a subscription rate of 252.46 times, followed by qualified institutional buyers (QIBs) at 138.75 times and retail investors at 130.99 times. This broad-based interest suggests that Unicommerce eSolutions is a promising investment, especially given its position as India's leading e-commerce enablement SaaS platform.

Despite the positive debut, analysts have noted that the IPO's pricing was aggressive, which could lead to short-term volatility. However, the company’s solid financials and strategic market position make it a compelling option for long-term investors.

To Summarise

Unicommerce eSolutions Limited made a strong market debut on Friday, August 13, 2024, with its shares listing at ₹108, aligning with the upper end of its IPO price band. The IPO was met with significant interest, resulting in a total subscription rate of 168.35 times. This overwhelming response was mainly driven by non-institutional investors (NIIs), who subscribed 252.46 times, followed by qualified institutional buyers (QIBs), who subscribed 138.75 times, and retail investors, who subscribed 130.99 times. 

The offering was an Offer for Sale (OFS), raising ₹276.57 crores, which will be allocated to the selling shareholders. Despite the aggressive pricing, the company's robust financial performance and strong market position as a leading e-commerce SaaS platform have garnered confidence among investors, making it a noteworthy listing.