Unicommerce IPO details

Unicommerce IPO: SaaS Platform Attracts ₹124 Crore from Anchor Investors Before Public Launch

1. Anchor Investor Allocation

• Amount Raised: Unicommerce eSolutions Ltd has raised ₹124.45 crore from anchor investors ahead of its Initial Public Offering (IPO).
• Shares Allocated: The company has allocated 11,523,831 equity shares to 14 anchor investors at the upper price band of ₹108 per share.

2. IPO Schedule

• Open Date: The IPO opens for subscription on Tuesday, August 6, 2024.
• Close Date: The IPO will close on Thursday, August 8, 2024.
• Basis of Allotment: The basis of allotment is scheduled for Friday, August 9, 2024.
• Refunds and Shares Credit: Refunds and the credit of shares to demat accounts are expected to be initiated on Monday, August 12, 2024.
• Listing Date: The shares are set to be listed on Tuesday, August 13, 2024.

3. Price Band and Offering Details

• Price Band: The price band for the IPO has been set at ₹102 to ₹108 per share.
• Funds to be Raised: The company aims to raise ₹276.57 crore through the IPO, which is an Offer for Sale (OFS) of 2.56 crore equity shares.
• Selling Shareholders: The OFS includes 94.38 lakh equity shares from Acevector Ltd (formerly Snapdeal Ltd) and 1.61 crore equity shares from SB Investment Holdings Pte. Ltd.
• No Funds for Company: The company itself will not receive any funds from this IPO as all proceeds will go to the selling shareholders.

4. Investor Allocation

• Qualified Institutional Bidders (QIBs): 75% of the shares are reserved for QIBs.
• Non-Institutional Investors (NIIs): 15% of the shares are allocated for non-institutional investors.
• Retail Investors: 10% of the shares are reserved for retail investors.

5. Marquee Investors

• Investors Included: The anchor investors include major financial institutions such as SBI Mutual Fund, ICICI Prudential MF, HDFC Mutual Fund, Kotak Mutual Fund, Nippon Mutual Fund, Morgan Stanley Investment Management (MSIM), Franklin Templeton Fund, M&G (Prudential UK), DSP Mutual Fund, and Aditya Birla Sun Life Mutual Fund.
• Domestic Mutual Funds: Out of the total shares allocated to anchor investors, 75.75% (8,729,328 shares) were allocated to 8 domestic mutual funds through 10 different schemes.

6. IPO Management

• Lead Managers: IIFL Securities Ltd and CLSA India Private Limited are the book-running lead managers for the IPO.
• Registrar: Link Intime India Private Ltd is serving as the IPO registrar.

Advantages and Disadvantages

Advantages:

1. Strong Anchor Investor Support: The IPO has attracted significant investment from renowned mutual funds and institutional investors, indicating strong market confidence.
2. Potential for Growth: The involvement of prominent investors and a well-structured offering could provide a positive outlook for the stock post-listing.
3. Structured Allocation: A significant portion of shares is reserved for Qualified Institutional Bidders, which can stabilize the stock’s performance in the initial phase.

Disadvantages:

1. No Funds for Company: Since the IPO is an Offer for Sale, the company will not receive any funds for its own use, limiting the direct benefits of the IPO.
2. Market Volatility: The performance of the IPO may be affected by broader market conditions and investor sentiment, which can impact the initial trading performance of the stock.
3. Allocation Constraints: With a large portion of shares allocated to institutional investors, retail investors may face limited availability, potentially affecting their participation.

Conclusion

The successful allocation of ₹124 crore from anchor investors highlights strong confidence in Unicommerce eSolutions ahead of its IPO. With significant participation from leading mutual funds and a well-structured offering, the IPO presents an attractive opportunity for investors. The focus on an offer for sale, rather than raising new funds, emphasizes the existing shareholders’ confidence in the company’s market position. As the IPO date approaches, the market will be keenly observing the subscription response and subsequent performance of Unicommerce on the stock exchange.

FAQs

1. What is the price band for the Unicommerce IPO? The price band for the Unicommerce IPO is set at ₹102 to ₹108 per share.
2. How much is the company aiming to raise through the IPO? Unicommerce eSolutions aims to raise ₹276.57 crore through its IPO, which is an offer for sale (OFS).
3. What is the allocation of shares in the IPO?

• 15% of shares are allocated for non-institutional investors (NII)
• 10% are designated for retail investors
• 75% are set aside for Qualified Institutional Bidders (QIB)

4. Who are the lead managers for the IPO? IIFL Securities Ltd and CLSA India Private Limited are the book-running lead managers for the Unicommerce IPO.
5. When will the shares be credited to demat accounts? Shares will be credited to demat accounts on Monday, August 12, 2024.
6. What is the listing date for the Unicommerce shares? The shares are scheduled to be listed on Tuesday, August 13, 2024.

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