Unicommerce Esolutions IPO Listing: Shares of SoftBank-backed Unicommerce Esolutions Ltd on Tuesday made its market debut with a huge premium of over 117 per cent against the issue price of Rs 108. The stock listed at Rs 230, rising sharply by 112.96 per cent from the issue price on the BSE.
Shares of the firm made its debut at Rs 235, rallying 117.59 per cent.
The company’s market valuation stood at Rs 2,325.77 crore.
Prashanth Tapse, senior vice-president (research) of Mehta Equities Ltd, said, “Despite markets remaining volatile, SoftBank-backed Unicommerce eSolutions listed above the street expectations backed by investors’ confidence after receiving overwhelming subscription demand. Strong listing is justified due to Unicommerce being the largest e-commerce enabled SaaS provider and only profitable company in this space with no listed peers.”
Hence, we continue to believe the company to command a premium valuation multiple and is well-positioned to capitalize on the expanding e-commerce enablement sector. “Hence, we recommend allotted investors continue to ‘HOLD‘ Unicommerce eSolutions shares with a long-term perspective,” Tapse said.
Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Unicommerce eSolutions made a spectacular debut on the stock market, listing at Rs. 235 per share, a staggering 117% premium over its issue price of Rs. 108. This blockbuster performance far exceeded pre-listing expectations, fueled by the massive oversubscription of 168.35 times and a robust grey market premium.”
The company’s strong market position as a leading e-commerce enablement SaaS platform, coupled with its proven track record of profitable growth, solidified investor confidence. While challenges like competitive pressures and negative cash flows remain, the initial market response highlights the immense potential of Unicommerce eSolutions in the burgeoning e-commerce ecosystem, she added.
“This exceptional listing underscores the company’s strong fundamentals and growth prospects. However, investors are advised to consider some profit booking at this level, and those who want to hold it may keep a stop loss at 210,” Nyati said.
The initial public offer of Unicommerce eSolutions got subscribed a whopping 168.35 times on the last day of bidding on Thursday.
The initial share sale had a price band of Rs 102-108 a share.
Founded in 2012, the company’s suite of SaaS solutions enables end-to-end management of e-commerce operations for brands, retailers, marketplaces, and logistics service providers.
It serves a large and growing base of clients in India, including Lenskart, Fabindia, Zivame, TCNS, Mamaearth, Emami, Sugar, BoAt, Portronics, Pharmeasy, Cello, Urban Company, Mensa, Shiprocket and Xpressbees.
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