Unicommerce eSolutions is set to kick-off innings at Dalal Street on Tuesday on a healthy note. If one goes by the signals from the grey market premium (GMP) for the company, the issue is likely to handsomely reward the investors on its stock market debut later today.
Grey market premium (GMP) of Unicommerce eSolutions has been holding firm following a robust interest from investors across all the segments. Last heard, the company was commanding a premium of Rs 68-70 per share, suggesting a listing pop of nearly 65 per cent for the investors. However, it was around Rs 55 when the issue closed for bidding.
Unicommerce eSolutions is India’s largest e-commerce enablement SaaS in the transaction processing or nerve centre layer, in terms of revenue. The company helps in efficiently managing the e-commerce operations of its client through its suite of products which has led to healthy financial growth for the company, said Parth Shah, Research Analyst at StoxBox.
"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. We had recommended a 'subscribe' rating for the issue," he said.
The IPO of Unicommerce eSolutions was open for bidding between August 6 and August 8. The SaaS company had offered its shares in the range of Rs 102-108 per share with a lot size of 138 shares. The company raised a total of Rs 276.57 crore from its IPO, which was entirely an offer-for-sale (OFS) of up to 2,56,08,512 equity shares.
The issue was overall subscribed a solid 168.39 times, thanks to the push from non-institutional investors (NIIs), whose quota was booked a stellar 252.48 times. The quota for qualified institutional bidders was subscribed a solid 138.75 times, while the portion reserved for retail investors saw bidding for 131.15 times during the three-day bidding process.
Unicommerce eSolutions is a leading e-commerce enablement SaaS platform and is set for a strong market debut on a strong note. The IPO garnered overwhelming investor interest, with a massive subscription of 168.35 times, said Shivani Nyati, Head of Wealth at Swastika Investmart.
"Its strong market position, diversified client base, and proven track record of profitable growth position it well for future expansion. However, competitive pressures, negative cash flows, and operational dependencies pose challenges. The company's strong fundamentals, coupled with the overwhelming investor response, indicate a potential for a stellar listing," she added.
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.
Brokerage firms were mostly positive on the issue suggesting investors to subscribe to it for a long term. 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.