Unicommerce eSolutions IPO Review
Unicommerce eSolutions is a leading SaaS platform providing e-commerce solutions, including inventory management, order fulfillments, and regulatory compliance. The company has shown impressive growth, both in revenue and profitability, with a significant international presence.
Financial Performance
Revenue Growth: The company has seen a 2-year revenue CAGR of 32.5%.
Profitability: It reported a PAT CAGR of 47.5% over the same period.
International Growth: Revenue from international contracts achieved a CAGR of 72.22% from FY2022 to FY2024.
IPO Details
IPO Dates: August 6 - August 8, 2024.
Price Band: Rs.102 - Rs.108 per share.
Issue Size: Rs.276.57 crore (entirely an OFS).
Grey Market Premium (GMP): Currently trading at a premium of Rs.40-Rs.41 per share.
Subscription Status
Overall Subscription: 1.40 times.
Retail Subscription: 6.26 times.
NII Subscription: 0.96 times.
Expert Opinions
Positive Outlook: Analysts appreciate Unicommerce's robust market position and growth trajectory. The strong financials and international expansion highlight its potential for long-term growth. Some experts recommend subscribing, expecting a 30% to 40% appreciation post-listing.
Neutral Stance: Despite the positive financials, some analysts caution about the high valuation. The company is attempting to secure high valuations based on its exceptional FY24 results, which might not be sustainable.
Should You Apply?
Pros:
- Strong growth and profitability.
- High demand indicated by GMP and subscription rates.
- Leading position in the e-commerce enablement sector.
Cons:
- High valuation concerns.
- Market volatility and global economic factors could impact performance.
Overall, Unicommerce eSolutions IPO appears attractive for long-term investors due to its solid fundamentals and growth prospects. However, potential investors should weigh these benefits against the high valuation and seek advice from certified financial experts before making a decision.
Posted on : 07-08-2024