Unicommerce eSolutions IPO opens today: GMP up 23%; Should you subscribe?

Unicommerce eSolutions IPO: Unicommerce eSolutions IPO opened for the public subscription today. The company seeks to raise Rs 276.57 crore from the public issue. The unlisted shares of Unicommerce eSolutions are trading at a premium of Rs 25 or 23.15 per cent in the grey market on the first day of its opening. This GMP indicates strong demand for the Unicommerce eSolutions IPO.

Unicommerce eSolutions raised Rs 124.46 crore from anchor investors on Monday, August 5, 2024, ahead of its opening for public subscription.

The subscription window for the Unicommerce eSolutions IPO closes on Thursday, August 8, 2024.

Unicommerce eSolutions IPO details

The public issue is available at a price band of Rs 102 - 108 per share with a lot size of 138 shares. The IPO comprises a fresh issue of 25,608,512 shares with a face value of Re 1 per share, aggregating up to Rs 276.57 crore. Investors can bid for a minimum of 138 shares and in multiples thereof. The minimum amount required by a retail investor to bid for the Unicommerce eSolutions IPO is Rs 14,904.

Link Intime India is the registrar for the Unicommerce eSolutions IPO, while IIFL Securities and CLSA India are the book-running lead managers.

The basis of allotment for Unicommerce eSolutions shares is scheduled for Friday, August 9, 2024. The company's shares are likely to be credited into demat accounts on Monday, August 12, 2024, and are expected to debut on the BSE and NSE on Tuesday, August 13, 2024.

According to the Red Herring Prospectus (RHP), the company will not receive any proceeds from the offer, as all the proceeds will go to the selling shareholders in proportion to the offered shares offloaded by them.

Also Read: Ceigall India's IPO subscribed 13.75 times on last day of share sale

Should you subscribe to Unicommerce eSolutions IPO? 

According to Deven Choksey Research, the e-commerce sector remains a lucrative space driven by rapid technological advancements and evolving consumer behaviors. As the leading e-commerce enablement SaaS platform in India, the brokerage believes the company benefits from its robust position, demonstrated by its profitability and substantial market share. Its flexible solutions and extensive integrations are crucial in addressing the complex needs of e-commerce operations, including inventory management, order fulfillment, and regulatory compliance.

The brokerage further notes that Unicommerce has demonstrated impressive international growth, with revenue from contracts outside India achieving a CAGR of 72.22 per cent from FY2022 to FY2024. Moreover, the company has witnessed a 2-year revenue CAGR of 32.5 per cent and PAT CAGR of 47.5 per cent during the same period.

Looking ahead, the company's strategies, focused on strengthening its Indian market presence, leveraging emerging technologies, and enhancing client satisfaction, position it well to capitalise on the sector's growth. The increasing Total Addressable Market (TAM) for its core and adjacent products, along with potential international expansions, underlies a positive outlook for continued revenue growth and market leadership. The company is expected to trade at a PE multiple of 84x on its FY24 EPS. We assign a NEUTRAL rating for this IPO," said Deven Choksey Research.