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Remember those IPOs that get snapped up in record time? Well, Unicommerce eSolutions just pulled off one of those. The company’s IPO opened yesterday, and, surprise, surprise, it was fully subscribed within just three hours!
That’s right, investors couldn’t resist getting a piece of this e-commerce enablement platform. Retail investors were enthusiastic, snapping up nearly 10 times their allotted shares. While other investor categories also showed interest, the retail frenzy really drove the IPO’s early success.
Unicommerce IPO Details
| Offer Price | ₹102 – ₹108 per share |
| Face Value | ₹1 per share |
| Opening Date | 6 Aug 2024 |
| Closing Date | 8 Aug 2024 |
| Total Issue Size (in Shares) | 25,608,512 |
| Total Issue Size (in ₹) | ₹276.57 Cr |
| Issue Type | Book Built Issue IPO |
| Lot Size | 138 |
| Listing at | BSE, NSE |
Unicommerce isn’t raising any new money through this IPO. Instead, it’s a way for existing shareholders to cash out. The company itself won’t see a single rupee from the IPO proceeds.
This ₹276.57 Cr IPO is an “Offer For Sale” or OFS. Two of the company’s biggest investors, AceVector and SB Investment Holdings, are selling a part of their stake to the public. So, if you invest in this IPO, you’re buying shares directly from these investors, not from the company itself.
Objectives of the IPO
Unlike most IPOs where the company receives the funds raised, Unicommerce won’t see a penny from this offering. It’s essentially a sale of existing shares by current investors to the public. The money you invest goes directly to the shareholders selling their stake, not the company itself.
IPO Allocation of Shares
You can apply for a minimum of 138 shares when investing in the Unicommerce IPO. The company is offering a total of 25 million shares to the public.
Around 30% is reserved for big institutional investors, 15% for non-institutional investors, and 10% for retail investors like you and me. A significant portion, around 45%, has already been allocated to anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
| Anchor Investor Shares Offered | 11,523,831 (45.00%) | NA |
| QIB Shares Offered | 7,682,554 (30.00%) | NA |
| NII (HNI) Shares Offered | 3,841,276 (15.00%) | |
| bNII > ₹10L | 2,560,851 (10.00%) | 1,325 |
| sNII < ₹10L | 1,280,425 (5.00%) | 662 |
| Retail Shares Offered | 2,560,851 (10.00%) | 18,556 |
| Total Shares Offered | 25,608,512 (100%) |
If there’s more demand than supply for shares, retail investors will get 138 shares each, while smaller and bigger non-institutional investors will get a minimum of 1,932 shares.
Grey Market Premium (GMP)
Unicommerce IPO is generating a lot of buzz. The unofficial market, known as the grey market, indicates a high share demand. The current share price estimate in this grey market is around ₹24-25 higher than the issue price. This is what we call the Grey Market Premium (GMP). A 22% premium suggests investors are quite optimistic about the company’s performance post-listing.
Subscription Status
Unicommerce’s IPO was a blockbuster. Investor enthusiasm was sky-high, and the entire issue was snapped up in three hours. Retail investors were particularly eager, oversubscribing their allotment by 10 times. While other investor groups also showed interest, the general public truly drove the initial frenzy.
Company Overview
Founded in 2012, Unicommerce is a tech wizard specializing in making e-commerce operations run smoothly. They offer software tools that help businesses manage their warehouses, keep track of inventory, handle orders from different channels, and even manage their retail stores.
With over 100 logistics partners and integrations with major e-commerce platforms, Unicommerce has become a go-to solution for many big-name brands like Lenskart, PharmEasy, and Mamaearth. And they’re not just a local player; they’ve also made inroads into Southeast Asia and the Middle East.
Essentially, Unicommerce is the backbone of the e-commerce world, ensuring your online shopping experience is as seamless as possible.
Financials
The company’s revenue has steadily climbed over the past three years. From ₹613.6 lakhs in Fiscal 2022, it jumped to ₹929.7 lakhs in the following year and reached ₹1,094.3 lakhs in Fiscal 2024. This consistent growth is a testament to Unicommerce’s expanding customer base and ability to tap into the growing e-commerce market.
The company turned a profit of ₹60.1 lakhs in Fiscal 2022, which climbed to a healthy ₹130.8 lakhs in Fiscal 2024. This indicates that Unicommerce is growing its top line, managing costs efficiently, and boosting profitability.
SWOT Analysis of Unicommerce eSolutions
| STRENGTHS | WEAKNESSES |
|---|---|
| Dominant position in Indian e-commerce enablement SaaS market Diverse customer base across various industries Scalable SaaS business model Robust technology platform for efficient operations | Intense competition in the market Reliance on a limited number of large clients Vulnerability to economic downturns |
| OPPORTUNITIES | THREATS |
| Expand product portfolio for new revenue streams Explore new geographical markets Strategic partnerships for enhanced market reach | Need for continuous technological innovation Importance of robust cybersecurity measures Economic uncertainties impacting e-commerce spending |
Conclusion
The Unicommerce IPO has garnered significant investor interest, with the issue fully subscribed within hours of opening. While the company’s strong financials and market position are positive indicators, investors should conduct thorough due diligence before making investment decisions. Factors such as intense competition, economic conditions, and the company’s ability to sustain growth should be carefully considered.
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IPO | Current IPO | Upcoming IPO | Listed IPO
*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
