IPO listed on 13 Aug'24
Unicommerce eSolutions Ltd
Minimum Investment
₹ 14,904 / 138 shares
Grey market premium
₹ 25 (23% premium)
Issue price
₹ 108
Listing price
₹ 235
Listing gains
127 (118%)
Listing on
Aug 13, 2024
Our Verdict:
Subscribe
- Unicommerce eSolutions Ltd (Unicommerce) stands out as a leading e-commerce enablement SaaS (Software as a Service) platform and is the only profitable entity among the top five players in this sector, showcasing a robust growth trajectory and a diverse client base.
- The company is set to broaden its e-commerce operations into South-East Asia and the Middle East, with strategic focuses on Singapore, the Philippines, Indonesia, the UAE, and Saudi Arabia.
- Regarding valuations, the IPO is ambitiously priced at a P/E ratio of 84x based on FY24 earnings. Although this is not considered cheap, Unicommerce remains a profitable SaaS venture in the fast-expanding e-commerce sector, making it an appealing investment opportunity.
- Considering these factors, investors may consider subscribing to the IPO for both potential listing gains and long-term growth prospects. Caution is advised, however, as the unpredictable macroeconomic climate could influence the IPO’s initial market performance.
About the company
Founded in
2 Feb'12
Managing director
Kapil Makhija
- Unicommerce is a leading eCommerce enablement SaaS platform that offers a comprehensive suite of products for managing post-purchase operations in various industries such as D2C brands, retailers, and logistics companies. Its solutions cater to businesses of all sizes, from SMBs (small and midsize businesses) to large enterprises, across both online and offline platforms.
- The company's offerings include versatile solutions for inventory management, order fulfillment, procurement, and returns management, designed to meet the needs of all types and sizes of retail and e-commerce businesses. It also boasts a robust technology infrastructure with 131 marketplaces and webstore integrations, 101 logistics partners, and 11 ERP, PoS, and other system integrations.
STRENGTHS
- Market Leadership: Unicommerce is the largest eCommerce enablement SaaS platform in India in terms of revenue and is notably the only profitable firm among the top five players in this sector.
- Impressive Growth Trajectory: Unicommerce stands out with its impressive growth, uncommon in e-commerce sectors, marking a compounded annual growth rate of 34% in total income. Both EBITDA and net profit have surged by 69% and 48% CAGR, respectively, from FY22 to FY24.
- Robust Fundamentals: Unicommerce enjoys solid fundamentals with consistent revenue growth, sustained profitability, and strong cash flows. It operates without any debt and benefits from a short receivable cycle of 40-50 days, leading to minimal working capital requirements.
- Healthy Profit Margins: Unicommerce boasts strong profitability with an EBITDA margin of 14% and a net profit margin of 13% as of FY24.
- High Client Retention and Growth: Serving a wide range of sectors, Unicommerce has consistently achieved a net revenue retention (NRR) over 100%, indicating it successfully grows revenue from its existing clients.
RISK FACTORS
- Client Concentration Risk: The top 10 clients account for 27.4% of the total revenue in FY24. Any changes in their future engagements could negatively affect the company's performance.
- Legal Risks: Unicommerce faces legal challenges with outstanding criminal proceedings against its promoters, involving Rs 129.4 crore. An unfavourable outcome could damage the company's reputation and disrupt its operations.
- Low Entry Barriers: SaaS companies typically invest heavily in product development during their early stages, which can eventually drive margin expansion through increased revenues. However, without significant competitive moats or regulatory barriers, these companies are vulnerable to market share erosion, especially from new entrants and global technology giants.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 276.57 crore
Fresh Issue
₹ -
OFS
₹ 276.57 crore
Price range
₹ 102 - 108
Lot size
138 shares
Issue Objective
This issue is solely an offer for sale (OFS), meaning that the company will not receive any proceeds from the offering. Instead, all proceeds from the offer will go directly to the selling shareholders.
Dates
Bidding open
6 Aug'24
Bidding close
8 Aug'24
Allotment date
9 Aug'24
Refund date
12 Aug'24
Listing
13 Aug'24
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.