Acevector IPO: Analysts assign 'avoid' tag amid stiff competition, losses

Acevector IPO review: Snapdeal-parent Acevector's ₹420-crore initial public offer (IPO) has opened for bidding on Friday as it looks to raise funds for technology and promotional expenses. Despite the valuation comfort, analysts have assigned an 'avoid' rating to the offer amid persistent losses, rising competition and logistical challenges. 

 

Acevector IPO price band is set at ₹30 to ₹32 per share, with a minimum lot size of 468 shares. For a retail investor, the minimum investment is  ₹14,976 at the upper end of the price band. 

 

The book-built issue is a mix of a fresh issue of ₹287 crore and an offer for sale (OFS) of ₹133 crore. The proceeds from the fresh share sale will be used for funding a portion of the marketing and business promotion expenses of the Marketplace business and technology infrastructure costs.  The grey market premium for Acevector IPO is ₹3 or 9.83 per cent, with the stock trading at ₹35 in the unofficial market.

 

 

The company operates an asset-light digital commerce ecosystem through its subsidiaries, spanning data, technology, and AI-driven businesses. 

Acevector IPO review

The company's revenue grew at a 15.9 per cent CAGR over FY24–FY26, driven by 40.5 per cent CAGR growth in its high-margin SaaS vertical, Unicommerce. 

 

Unicommerce SaaS is the key positive, with FY26 revenue of ₹204 crore and positive adjusted Ebitda, while the Snapdeal marketplace continues to remain loss-making and requires significant marketing investment, observed Swastika Investmart.

 

Overall, adjusted Ebitda loss narrowed to Rs 16 crore in FY26 from Rs 27 crore in FY24.

 

Future growth is dependent on Tier 2+ penetration, AI search enhancements, SaaS client expansion, and retail store rollouts, said SBI Securities. However, it finds persistent losses, intense industry competition, and complete reliance on 3PL logistics as key concerns.

 

Swastika also said that the company remains smaller than major listed e-commerce peers, while high logistics/marketing costs, continued losses, and dependence on future SaaS growth remain key risks. Therefore, while the valuation appears reasonable on a sales basis, it is not deeply attractive given the absence of profits, the brokerage said, assigning an 'avoid' rating.

 

These views were echoed by SBI Securities, which also has an 'Avoid' rating. "Given the intense competition from established players such as Meesho, Flipkart and Amazon, which continue to exert pressure on market share, AVL is expected to continue reporting losses in the near to medium term."

 

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