Unicommerce eSolutions IPO opens today: Should you subscribe to the SaaS player's issue?

The initial public offering (IPO) of Unicommerce eSolutions opens for bidding on Tuesday, August 6 and the issue can be subscribed until Thursday, August 8. The Kunal Bahl-promoted company is offering its shares in the range of Rs 102-108 apiece. Investors can apply for a minimum of 138 equity shares and its multiples thereafter.  

Incorporated in February 2012, Unicommerce eSolutions is a SaaS platform that manages e-commerce operations for brands, sellers, and logistics providers. The company offers a range of software products to help businesses efficiently manage their e-commerce operations after purchase.  

The Rs 276.57-crore IPO of Unicommerce eSolutions is entirely an offer-for-sale (OFS) of up to 2,56,08,512 equity shares by its promoter entity AceVector (formerly known as Snapdeal) and investor SB Investment Holdings. The company will not receive any proceeds from the IPO.  

Ahead of its IPO, Unicommerce eSolutions has raised Rs 124.5 crore through its 11 anchor investors, where it allocated 1,15,23,831 shares at Rs 108 apiece. Anchor book included names like Morgan Stanley, Aditya Birla Sun Life Trustee, The Prudential Assurance Company, SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund, Kotak Mahindra Trustee and more.  

The company's products include a warehouse and inventory management system, a multi-channel order management system, an omnichannel retail management system, a seller management panel for marketplaces, post-order services for logistics tracking and courier allocation, and a payment reconciliation system.  

Unicommerce eSolutions has a wide range of technology and partner integrations. The company processed 791.63 million order items through its Order Management System (OMS) and had integrations with 131 marketplaces and web store software for automated order information flow, as of March 31, 2024.  

Unicommerce reported a net profit of Rs 13.08 crore for the year ended on March 31, 2024, while its bottomline stood at Rs 6.48 crore in the year ago period. The company's revenue stood at Rs 109.43 crore for the FY24, while they came in at Rs 92.97 crore in the previous fiscal year.  

Unicommerce eSolutions has reserved 75 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the net offer. Remaining 10 per cent of the net offer shall be allocated for retail investors.  

IIFL Securities and CLSA India are the book running lead managers of the Unicommerce eSolutions IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE, with Tuesday, August 13 as the tentative date of listing. Here's what a host of brokerage firms say about the IPO of Unicommerce eSolutions:  

Swastika Investmart Rating: Subscribe with Caution Unicommerce eSolutions is a leading e-commerce enablement SaaS platform, serving as a critical infrastructure for its diverse client base across India and globally. The company's robust product suite, coupled with a proven track record of profitable growth, positions it well for continued expansions, said Swastika Investmart.  

"While Unicommerce benefits from a strong market position and upselling/cross-selling opportunities, it faces competitive pressures, negative cash flows, and operational dependencies on third-party service providers. Its business is subject to seasonal fluctuations. The IPO is aggressively priced at a P/E of 84 times, reflecting a premium valuation," it said with a subscribe with caution view.  

Arihant Capital Market Rating: Subscribe Unicommerce Esolutions, with nearly a decade of expertise in leading Saas solutions and platforms that integrate operational efficiency and services and has a strong presence in the Indian market, could benefit in the future. Clients including Boat, Mamaearth, Lenskart, and Urban Company benefit from this company's services, said Arihant Capital Markets.  

"It enjoys being a single contributor to the Indian SaaS sector while supporting global organizations. Its strong market position, diverse clientele, and scalable business model based on transaction value make it an advantageous choice. The lower entry barrier and possible failure to advance technology may pose a challenge and vulnerability to the firm," it said with a 'subscribe' rating.  

StoxBox Rating: Subscribe "The issue is valued at a P/E of 93.1 times based on FY24 earnings on the upper end of the price band. Though the issue looks rich in terms of valuation, we believe that the company’s strong business performance along with industry tailwinds provide an opportunity from a medium to long term perspective," said StoxBox with a 'subscribe' rating for the IPO.  

Marwadi Financial Services Rating: Subscribe "Unicommerice is going to list at a P/E of 84.59 times with a marketcap of Rs 1,106 crore. There are no listed entities comparable with that of the company’s business," said Marwadi Financial Services, with a 'subscribe' rating to this IPO as the company is the largest e-commerce enabled SaaS products platform and available at reasonable valuation considering the future growth potential.  

Ventura Securities Rating: Subscribe Positioned as India’s largest e-commerce enablement SaaS platform in the transaction processing layer by revenue from FY21 to FY23, Unicommerce stands out as the only profitable entity among the top five players in FY23. By regularly updating its products, it addresses the evolving needs of retail enterprises, reinforcing its vital role in the e-commerce supply chain, said Ventura with the 'subscribe' tag.

 

 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.