Unicommerce eSolutions IPO Listing on Tuesday: Latest GMP Signals Over 60% Gains, What Analysts Say – News18

Unicommerce eSolutions IPO Listing: The equity shares of Unicommerce eSolutions Ltd are set to list on major bourses BSE and NSE at 10:00 am on Tuesday, August 13. According to market observers, investors are likely to make a listing gain of over 60 per cent as its latest GMP is at Rs 69, or 63.89 per cent premium, over its issue price of Rs 108 per share.

The Unicommerce eSolutions IPO, which was open for subscription between August 6 and August 8, received a whopping 168.35 times subscription, garnering bids for 2,37,11,36,286 shares as against 1,40,84,681 shares on offer. Its price band was fixed at Rs 102-Rs 108 apiece. Its share allotment took place on August 9.

Unicommerce eSolutions IPO: A Step-by-Step Guide to Check Allotment Status

According to market observers, unlisted shares of Unicommerce eSolutions Ltd are trading Rs 69 higher in the grey market than their issue price. The Rs 69 grey market premium or GMP means the grey market is expecting a 63.89 per cent listing gain from the public issue. The unlisted shares of Unicommerce eSolutions are trading at Rs 177 apiece in the grey market as against its upper issue price of Rs 108.

The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

What Analysts Say

Shivani Nyati, head of wealth, Swastika Investmart Ltd, said “Unicommerce eSolutions, a leading e-commerce enablement SaaS platform, is set for a strong market entry. The IPO garnered overwhelming investor interest, with a massive subscription of 168.35 times and a robust grey market premium (GMP) currently at ₹69 (63.89%).”

The company’s strong market position, diversified client base, and proven track record of profitable growth position it well for future expansion. However, competitive pressures, negative cash flows, and operational dependencies on third-party service providers pose challenges. Additionally, the IPO’s aggressive valuation at a P/E of 84x warrants cautious optimism, she added.

“Despite these factors, the company’s strong fundamentals, coupled with the overwhelming investor response, indicate a potential for a stellar listing,” Nyati said.

Prashanth Tapse, senior vice-president (research) of Mehta Equities Ltd, said that despite markets remaining volatile in the bidding period, SoftBank-backed Unicommerce eSolutions received an overwhelming response on the last day of the issue from all types of investors indicating investors’ confidence to invest in India’s largest e-commerce enablement SaaS platform in the transaction processing layer. Non-institutional investors and institutional investors led the demand along with retail who bid in line with QIB’s and secured overall bids of 168.35 times on its third day of bidding.

“Considering the strong subscription demand Unicommerce became the second biggest in terms of subscription so far in 2024 and understanding the market mood, we expect there is a good room for healthy listing gain in the range of nearly 40% and above against the issue price of Rs 108 per share and we continue to recommend allotted investors to hold it for a long term,” he added.

On valuation part, the issue was fully priced IPO offer by looking at its near term growth triggers. But being the largest ecommerce enabled SaaS provider and only profitable in this space with no listed peers, we believe the company may command a premium valuation multiple. Investors should also look at IPO offers which come with 100% OFS i.e. Rs 276 cr issue which is an area of concern for new investors, Tapse added.

“But, with its unique technology capabilities and continuous innovation, we believe the company is well positioned to capitalize on the expanding e-commerce enablement sector. Hence, we recommend allotted investors to ‘hold’ Unicommerce eSolutions shares with a long-term perspective,” he added.