Unicommerce eSolutions shares dip following solid debut: Should you buy, sell, or hold?

The Rs 276.6 crore IPO was entirely an offer-for-sale of 2.6 crore shares, which according to Prashanth Tapse, Senior VP of Research at Mehta Equities, could be a concern for new investors

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26 Aug, 2025 12:21

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Analysts were cautious about Unicommerce eSolutions Ltd, highlighting concerns over its lofty valuation and the absence of listed peers for comparison. Unicommerce made a strong debut on the NSE on August 13, with its shares getting listed at Rs 235 apiece, a remarkable premium of 117.6 percent over the IPO price of Rs 108. At 1.40 PM, Unicommerce's shares were down 6.5 percent at Rs 219.71.

The IPO was subscribed 168.4 times overall, reflecting investors' confidence in the SoftBank-backed enablement software-as-a-service (SaaS) provider. The Rs 276.6 crore IPO was entirely an offer-for-sale of 2.6 crore shares, which according to Prashanth Tapse, senior VP of research at Mehta Equities, could be a concern for new investors. However, Tapse believes that with the company's unique technology capabilities and continuous innovation, it is well positioned to capitalise on the expanding e-commerce enablement sector. "We recommend allotted investors to 'Hold' Unicommerce's shares with a long-term perspective.

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Despite the high valuation, Parth Shah, Research Analyst at StoxBox, advised investors to 'Hold' the shares from medium to long term duration. "Unicommerce eSolutions Ltd stands as India's leading e-commerce enablement SaaS provider in the transaction processing sector, based on revenue for the FY2021-23 period," he said.

Narendra Solanki, head of fundamental research at Anand Rathi Shares and Stock Brokers, offered a more cautious view. "The company's P/E ratio is 84.3 times based on its FY24 earnings, with a market capitalisation of Rs 11,062 million and a market cap-to-sales ratio of 10.6 times its FY24 earnings." Solanki went on to say that Unicommerce does not have any listed peers in India or outside India and since the issue is richly priced, he recommended a 'Avoid' rating to the IPO.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.