Unicommerce eSolutions IPO to Raise Rs. 276.57 Crore, Opens on August 6

Ahmedabad, Aug 3: Unicommerce eSolutions Ltd. (UEL) is set to launch its initial public offering (IPO) from August 6 to August 8, 2024, aiming to raise Rs. 276.57 crore through an Offer for Sale (OFS) of 25,608,512 equity shares. The price band for the shares has been set between Rs. 102 and Rs. 108 per equity share of Re. 1 each. Notably, the company will not receive any proceeds from the offer, as all funds will go to the selling shareholders. The minimum application required is for 138 shares, with subsequent applications in multiples thereof. Post-allotment, the shares will be listed on the BSE and NSE.

Unicommerce eSolutions Ltd. has a management team that includes Kapil Makhija as the Managing Director and Chief Executive Officer. The team also comprises a chairman, board of directors, and other executives involved in the company’s leadership and strategic direction. For specific details about the entire management team, you might want to visit the official Unicommerce website or check their corporate communications.

UEL, recognized as India’s largest eCommerce enablement SaaS platform in terms of revenue for the past three fiscal years, stands out as the only profitable company among the top five players in this industry during Fiscal 2023. The company’s compliance with the “rule of 40″—an industry benchmark that combines revenue growth and profitability (EBITDA as a percentage of revenue) to total at least 40%—underscores its efficient growth capabilities. In Fiscal 2023, UEL boasted the highest PAT margin among its competitors.

The company’s suite of products, designed to create efficiency gains for clients, has significantly contributed to its financial growth. Key strengths include plug-and-play integrations with vital technologies and partners, enabling streamlined e-commerce operations. These capabilities make UEL an integral part of its clients’ tech stacks, serving a diverse range of clients across the retail landscape, including D2C brands, brand aggregators, traditionally offline brands, retailers, marketplaces, logistic players, and SMBs.

Financially, UEL has demonstrated robust performance, with total income and net profit figures for the past three fiscals reported at Rs. 61.36 crore / Rs. 6.01 crore (FY22), Rs. 92.97 crore / Rs. 6.48 crore (FY23), and Rs. 109.43 crore / Rs. 13.08 crore (FY24). The company’s average EPS over the same period was Rs. 0.96 (basic), with an average RoNW of 16.07%. Despite its solid financials, the IPO is considered aggressively priced, with a P/E ratio of 84.38 based on FY24 earnings and 171.43 based on FY23 earnings.

The company’s IPO, handled by IIFL Securities Ltd. and CLSA India Pvt. Ltd. as joint Book Running Lead Managers (BRLMs), and Link Intime India Pvt. Ltd. as the registrar, marks a significant step for UEL. While the company has not declared any dividends for the reported periods, it adopted a dividend policy in December 2023. Despite the lack of listed peers for direct comparison, UEL’s unique position and first-mover advantage in the market offer a compelling investment opportunity for well-informed investors considering long-term growth.

Unicommerce eSolutions Ltd.’s upcoming IPO represents a critical milestone for the company as it continues to leverage its market-leading position and profitable track record to attract investor interest and drive future growth.