Unicommerce eSolutions IPO is scheduled to run from August 6, 2024, to August 8, 2024, with a listing date scheduled for August 13, 2024. This IPO represents an important opportunity for investors to participate in incremental growth. E-commerce solutions provider with a solid financial track record and promising prospects.
Below, we explore the detailed details of the Unicommerce eSolutions IPO, the financial position of the company, and the investment potential for different categories of investors.
Unicommerce eSolutions IPO Dates and Key Information
- IPO Date: 6 August 2024 to 8 August 2024
- List Date: August 13, 2024
- Face value: ₹1 per share
- Price Band: ₹102 to ₹108 per share
- Lot Size: 138 shares
- Total Issue Size: 25,608,512 shares, aggregating up to ₹276.57 crore
- Offer for Sale: 25,608,512 shares of ₹1 each, totaling up to ₹276.57 crore
- Issue Type: Book Built Issue IPO
- Listing at: BSE, NSE
- Shareholding pre-issue: 102,434,048 shares
- Shareholding post issue: 102,434,048 shares
Unicommerce eSolutions IPO Timeline
- IPO Opening Date: Tuesday, August 6, 2024
- IPO Closing Date: Thursday, August 8, 2024
- Basis of Allotment: Friday, August 9, 2024
- Refund Start: Monday, August 12, 2024
- Credit of Shares on Demat: Monday, August 12, 2024
- List Date: Tuesday, August 13, 2024
- Cut-off time for UPI order confirmation: 8th August 2024 at 5 PM
Lot Size and Investment Details
Investors can bid for a minimum of 138 shares and in multiples thereof. The table below details the minimum and maximum investment amounts for retail investors and High Net-worth Individuals (HNI):
Application | Lots | Shares | Amount (₹) |
Retail (Min) | 1 | 138 | 14,904 |
Retail (Max) | 13 | 1,794 | 193,752 |
S-HNI (Min) | 14 | 1,932 | 208,656 |
S-HNI (Max) | 67 | 9,246 | 998,568 |
B-HNI (Min) | 68 | 9,384 | 1,013,472 |
Promoter Holding
The promoters of Unicommerce eSolutions include AceVector Limited (formerly known as Snapdeal Limited), Starfish I Pte. Ltd., Kunal Bahl, and Rohit Kumar Bansal. The shareholding pre-issue is 53.38%, and it is the same post-issue.
Financial information and performance indicators
Unicommerce eSolutions has shown appreciable financial growth over the years. The company’s revenue grew by 17.71% and profit after tax (PAT) increased by 101.95% for the fiscal year ended March 31, 2024 and March 31, 2023. Financials in ₹ Crore are presented below:
Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
Assets | 109.11 | 81.74 | 59.03 |
Revenue | 109.43 | 92.97 | 61.36 |
Profit After Tax | 13.08 | 6.48 | 6.01 |
Net Worth | 68.91 | 51.89 | 41.37 |
Reserves and Surplus | 45.87 | 37.70 | 31.47 |
Key Performance Indicators
The market capitalization of Unicommerce eSolutions IPO is ₹1,106.29 Cr. The company’s key performance indicators (KPIs) as of March 31, 2024, are as follows:
- ROE (Return on Equity): 17.36%
- ROCE (Return on Capital Employed): 25.93%
- RoNW (Return on Net Worth): 18.98%
- P/BV (Price to Book Value): 15.81
Earnings Per Share (EPS) and Price to Earnings (P/E) Ratio
The EPS and P/E ratios for pre and post-IPO are calculated based on the latest financial year earnings as of March 31, 2024:
- Pre IPO EPS: ₹1.28
- Post IPO EPS: ₹1.28
- P/E (x): 84.59
These figures highlight the company’s profitability and the valuation at which the shares are being offered.
Investment considerations
Growth Potential
Unicommerce eSolutions has shown strong growth in both revenue and profitability. 17.71% growth in revenue and 101.95% growth in PAT underlines the company’s effective operational strategy and market demand for its solutions.
Market Conditions
As a leading e-commerce solutions provider, Unicommerce eSolutions is well-positioned to capitalize on the growing e-commerce market in India. The company’s solutions cater to various aspects of e-commerce operations, including order management, inventory management, and warehouse management, making it an integral player in the e-commerce ecosystem.
Strong Developer Support
The support of established promoters like AceVector Limited (Snapdeal) and seasoned entrepreneurs like Kunal Bahl and Rohit Kumar Bansal provides the company with a strong foundation. This endorsement not only builds credibility but also ensures strategic support and industry connections.
Financial Stability
The company’s financial stability is evident from its consistent growth in assets, revenue, and profit after tax. The healthy reserves and surplus further reinforce its financial soundness, making it a viable investment option.
Investment risk
While the upside potential is significant, investors should also consider the following risks:
- Market Volatility: The stock market is subject to volatility and the performance of IPOs is influenced by broader market conditions.
- Competitive Landscape: The e-commerce solutions market is competitive, with many players competing for market share. Staying competitive requires constant innovation and effective execution.
- Economic Factors: Economic downturns or changes in regulatory policies can affect a company’s performance.
You may like to read: Brainbees Solutions Limited (Firstcry) IPO Details 2024
Conclusion
The Unicommerce eSolutions IPO offers a promising investment opportunity with strong financials, significant growth potential, and the backing of a reputable promoter.
The company’s strategic position in the e-commerce solutions market, coupled with its strong performance indicators, makes it an attractive proposition for retail and institutional investors.
Investors should carefully consider the investment amount and associated risks before making a decision. The IPO’s price band of ₹102 to ₹108 per share provides a reasonable entry point considering the company’s financial performance and market potential.
As always, it is advisable to do thorough research and possibly consult with a financial advisor to align investments with personal financial goals and risk appetite.