SoftBank-backed SaaS platform Unicommerce sets IPO price band at Rs 102-108 a share

New Delhi: SoftBank-backed SaaS platform Unicommerce eSolutions Ltd on Thursday announced a price band of Rs 102 to Rs 108 crore a share for its Rs 276-crore Initial Public Offering (IPO).

The company's maiden public issue will open for subscription on August 6 and conclude on August 8 and the bidding for the anchor portion will open for a day on August 5, the company announced.

The issue is entirely an Offer for Sale (OFS) aggregating up to 2.56 crore equity shares valued at Rs 276.6 crore, at the upper end of the price band, by the selling shareholders.

Since the IPO is completely an OFS, the entire proceeds will go to the selling shareholders.

Under the OFS, SB Investment Holdings (UK) Ltd, an affiliate of Japan's SoftBank, will offload 1.61 crore shares, and promoter AceVector Limited (formerly known as Snapdeal Limited) will sell up to 94.38 lakh shares.

Founded in 2012, Unicommerce eSolutions is India's leading e-commerce enablement software-as-a-service (SaaS) platform. The company's suite of SaaS solutions enables end-to-end management of e-commerce operations for brands, retailers, marketplaces, and logistics service providers.

It serves a large and growing base of clients in India, including Lenskart, Fabindia, Zivame, TCNS, Mamaearth, Emami, Sugar, BoAt, Portronics, Pharmeasy, Cello, Urban Company, Mensa, Shiprocket and Xpressbees.

In February, Unicommerce had said it was expanding its overseas operations by onboarding more clients.

It is already serving 46 clients in Singapore, the Philippines, Indonesia, the UAE, and Saudi Arabia and is now expanding these operations by adding more clients.

According to a Redseer Report, the Total Addressable Market (TAM) for players in the eCommerce enablement SaaS in the transaction processing or nerve centre layer was estimated at about USD 1.2 billion in 2023. This growth is driven by the increasing market potential for core products in this layer, an opportunity to broaden the product portfolio, and international expansion prospects in SEA and the Middle East.

Specifically, in India, the TAM for core products in the transaction processing layer was approximately USD 260 million in 2023.

The company said that 75 per cent of the issue size has been reserved for qualified institutional buyers, 35 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 138 equity shares and in multiples thereof.

IIIFL Securities and CLSA India are the book-running lead managers to the issue. Shares of the company will be listed on BSE and the National Stock Exchange.