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Unicommerce IPO interest paves way for small, profitable startups to go public

EntrackrEntrackr · 11m ago
Unicommerce IPO interest paves way for small, profitable startups to go public
Medial

Last month, a clutch of tech startups filed their initial public offering documents (IPO) with the Securities Exchange Board of India. A move that has been welcomed by institutional as well as retail investors. After the success of Nykaa, Zomato, Mamaearth, Ixigo, TBO Tek, and others, one thing is clear: solid numbers and strong fundamentals are key to making a significant impact in the public market. Electric mobility company Ola Electric and SaaS firm Unicommerce opened for public subscription on August 2 and August 6 with an issue size of Rs 6,145 crore and Rs 276 crore, respectively. The Delhi-based Unicommerce has been oversubscribed by 168 times, indicating a very high possibility of a lucrative pop on listing. SoftBank-backed Ola Electric, on the other hand, was merely oversubscribed by 3.86X only. On top of that is the rising concern that the latter might list at a discount to its IPO price. If this premise does play out, then it could strengthen some major underlying currents in the public markets. Unicommerce reported a revenue of Rs 104 crore in the fiscal year ending March 2024, with a profit of Rs 13 crore. Ola generated Rs 5,010 crore in revenue in the same period with a loss of Rs 1,584 crore. While comparing different segments might not be entirely appropriate, the performance of these firms’ stock prices post listing will do one thing for sure. Retail investors will continue to tilt towards companies with strong fundamentals aka profitability and decent year-on-year growth. Companies like Unicommerce, Ixigo, and TBO Tek are demonstrating to growth-stage founders that entering the Unicorn Club might not be the ultimate goal. Instead, they show that companies can successfully go public with a strong financial foundation or a visibly viable model, even at a modest scale. Small firms, once they establish their credentials or capability to grab opportunities, are being priced at a massive premium simply because of the longer and steeper growth opportunity that is perceived to be ahead of them. For large firms on the other hand, an IPO, especially if it involves a significant secondary offering is going to be seen as an exit opportunity for its investors. Rather than an entry point for retail investors.

IPO-bound Awfis reports Rs 616 Cr income in first 9 months of FY24

EntrackrEntrackr · 1y ago
IPO-bound Awfis reports Rs 616 Cr income in first 9 months of FY24
Medial

The year 2024 is turning out to be IPO season as over a dozen companies are ready to make their debut on the stock exchange. In the past 10 days, two companies – TBO Tek and general insurance Go Digit went public. Now, Awfis is slated to get listed on May 22. While TBO Tek and GoDigit were profitable till Q3 FY24, Awfis was in the red during the same period with a loss of Rs 19 crore. The Peak XV-backed firm has disclosed its financial numbers for the nine months period ending December 2024. Let’s analyze its financial performance for the three quarters of the last fiscal year. Awfis’s revenue from operations stood at Rs 616 crore during the first three quarters (March -Dec ’23) of FY24. In FY23, the firm’s total revenue was recorded at Rs 545 crore. Founded in 2015, Awfis offers customized office spaces for startups, SMEs, and large corporations including ancillary services like food and beverages, IT support, and infrastructure services among others. Income from rental services formed 64.7% of the total operating revenue which stood at Rs 399 crore in the first three-quarters of FY24. Revenue from construction and fit-out projects, facility management, and the sale of food items were other sources for collections for Awfis. It also added Rs 17.1 crore from non-operating activities tallying the firm’s total revenue to Rs 634 crore in the first three quarters of FY24. On the cost side, its subcontracting cost and rent & maintenance cumulatively formed 31.6% of the overall expenditure which was recorded at Rs 207 crore (Q1-Q3) FY24. Its employee benefits, brokerage, electricity, legal fees, depreciation and amortization, finance and other overheads took the total expenditure to Rs 653 crore in the same period. The growing scale and controlled cost mechanism helped Awfis to reduce its net losses to Rs 19 crore in the first 9 months of FY24. On a unit level, it spent Rs 1.06 to earn a rupee in the above-mentioned period. Awfis will open its public bidding from 22nd -27th May with a price band of Rs 364-382 per share having a lot size of 39 shares. While the disclosure of shares offered to anchor investors will be made on 21st May 2024. In the past six months, a clutch of startups have filed their draft IPO papers and are waiting for the approval from SEBI. The notable names include Ola Electric, FirstCry, MobiKwik, and Unicommerce.

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