MUMBAI, 1st AUGUST, 2024 (GPN): Unicommerce eSolutions Limited (UNICOMMERCE) IPO is going to open on August 6. The price band for this has been fixed at Rs 102-108 crore per share. The lot size is 138 shares. The company wants to raise Rs 276.57 crore. Anchor investors will be able to bid on August 5. The issue will close on August 8. After this, the shares will be listed on BSE and NSE on August 13. Unicommerce ESolutions was started in 2012. In 2015, it was bought by Acevector Limited (formerly known as Snapdeal Limited).

75 percent of the IPO of UNICOMMERCE a SaaS platform invested by Snapdeal and Softbank  is reserved for qualified institutional buyers, 10 percent for retail investors and 15 percent for non-institutional investors. IIFL Securities Limited and CLSA India Private Limited are the book running lead managers (“BRLMs”) to the Offer. The registrar is Link Intime India.

This software-as-a-service (SaaS) platform manages e-commerce operations for brands, sellers and logistics providers. The total Offer size of Equity Shares comprises offer for sale (OFS) of up to 25,608,512 Equity Shares valued at Rs 276.57 crore. Out of which 9,438,272 Equity Shares are being offered for sale by Acevector Limited (formerly known as Snapdeal Limited) (“Promoter Selling Shareholder”) and 16,170,240 Equity Shares by SB Investment Holdings Pte. Ltd (“Investor Selling Shareholder”, together with Promoter Selling Shareholder, the “Selling Shareholders”).

This means that the money raised from the IPO will go to the shareholders selling shares in the OFS. However, Snapdeal cofounders Kunal Bahl and Rohit Bansal, who hold a joint stake in Unicommerce through their venture capital firm B2 Capital Partners, have withdrawn from the OFS. They had initially planned to offload 22 lakh equity shares.

The company will not get any amount. The promoters of the company are AceVector Limited (formerly Snapdeal), Starfish I Pte. Ltd, Kunal Bahl and Rohit Kumar Bansal. Snapdeal wants to sell 94.38 lakh shares in the IPO. At the same time, SoftBank will keep 1.61 crore shares for sale.

Unicommerce eSolutions’ revenue grew 17.71 percent to Rs 109.43 crore in FY24 from Rs 92.97 crore a year ago. Net profit grew 101.95 percent to Rs 13.08 crore during the fiscal year from Rs 6.48 crore in FY23. Unicommerce was invested in December 2023 by public market investors. These include Anchorage Capital Partners, Madhuri Madhusudan Kela, Rizwan Koita and Jagdish Moorjani (co-founders of CitiusTech), Dilip Vellodi (founder of Sutherland Global Services) and others.

Other high net worth individuals including Siddharth Sundar Iyer (SI Investments), S. K. Jain (Co-founder, Westbridge Capital) and Varun Alagh (Mamaearth) also bought shares in the company during the May-July 2024 period.

The objectives of the Offer are to (i) carry out the sale of up to 25,608,512 Equity Shares by the Selling Shareholders and (ii) achieve the benefits of listing the Equity Shares on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” together with BSE, the “Stock Exchanges”) (The “Objects of the Offer”). NSE is the designated Stock Exchange in respect of the Offer.

This Equity Shares are being offered through the red herring prospectus dated July 30, 2024 (the “RHP”) filed by the Company with the Registrar of Companies, National Capital Territory of Delhi and Haryana at New Delhi, Securities and Exchange Board of India (“SEBI”) and Stock Exchanges.

The IPO marks a significant step for Unicommerce eSolutions as it seeks to leverage public capital markets to fuel its growth and expansion. The company’s decision to price the shares within this band reflects its strategic considerations in attracting a broad base of investors while ensuring an optimal valuation.

RHP Link: https://www.iiflcap.com/Upload/InvestmentBanking/Prospects/Unicommerce_eSolution_Ltd_RHP.pdf

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