Unicommerce IPO: SaaS Startup’s Public Offer Oversubscribed 12.23X On Day 2

The initial public offering (IPO) of SaaS startup Unicommerce was subscribed 12.23X on the second day of bidding on Wednesday (August 7).

As per the BSE data, the startup’s IPO received bids for 17.22 Cr shares as against 1.40 Cr shares on offer.

The public offering received an overwhelming interest from retail individual investors (RIIs) on Day 2. They bid for 9.11 Cr shares as against 25.60 Lakh shares on offer, resulting in 35.57X oversubscription.

Trailing retail investors were non-institutional investors (NIIs), who also oversubscribed their quota 19.51X. NIIs bid for 7.49 Cr shares against 38.41 Lakh shares reserved for them.

Interest from qualified institutional buyers (QIBs) also picked up on Day 2. The QIBs bid for 61.67 Lakh shares against 76.82 Lakh shares reserved for them, leading to a 80% subscription of their quota. 

Ahead of its IPO, Unicommerce raised INR 124.4 Cr from 14 anchor investors .

Post the culmination of the public offer tomorrow, Unicommerce will get listed on BSE and NSE. The startup has set a price band of INR 102-108 for the public issue. 

The startup’s IPO consists only of an offer for sale (OFS) of 2.56 Cr shares. Its investors AceVector Ltd (formerly Snapdeal) and SoftBank will be selling up to 94.38 Lakh equity shares and up to 1.61 Cr equity shares, respectively. 

Ahead of its listing, brokerage firm KR Choksey gave the startup’s IPO a “Neutral” rating. “The ecommerce sector remains a lucrative sector driven by rapid technological advancements and evolving consumer behaviours. As the leading e-commerce enablement SaaS platform in India, the company benefits from its robust position, demonstrated by its profitability and substantial market share,” it said in its IPO note. 

Meanwhile, brokerage BP Wealth is bullish on the company’s public market debut and gave a subscribe rating to the public issue. “Though the issue looks rich in terms of valuation, we believe that the company’s strong business performance along with industry tailwinds provide an opportunity from a medium to long-term perspective,” it said in its IPO note.

Founded in 2012, Unicommerce is an ecommerce SaaS startup that helps businesses manage inventory across all online marketplaces. In its RHP, the startup also claimed to be the largest ecommerce enablement SaaS platform in transaction processing in terms of revenue in FY21, FY22, and FY23. Increff, Vinculum, Browntape, and Easyecom are among the other players that it competes with.

The startup managed to improve its financial health in the run up to its public offer. For the financial year 2023-24 (FY24), Unicommerce’s net profit more than doubled to INR 13.1 Cr from INR 6.5 Cr reported in the previous year. Operating revenue jumped 15% to INR 103.58 Cr from INR 90.06 Cr in FY23. 

Amid the IPO boom in the Indian equities markets, a number of startups are eyeing public listings. Ola Electric and FirstCry are also expected to list on the stock exchanges within a week.

The IPO of Ola Electric, which closed on Tuesday, was oversubscribed 4.27X on the final day of bidding. Meanwhile, FirstCry IPO saw a muted response on the second day of bidding today, and was subscribed 30%.

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