E-commerce platform Snapdeal has filed for an initial public offering (IPO) with market regulator Securities and Exchange Board of India (SEBI) on Tuesday, joining dozens of firms in the country that have tapped the capital markets this year.
The public issue comprises fresh issuance of equity shares worth ₹1,250 crore and an offer for sale (OFS) of 3.07 crore equity shares, according to the draft red herring prospectus (DRHP). Snapdeal’s IPO, targeted for early next year, comes after a record year for India market debuts.
Snapdeal was founded in 2007 by Kunal Bahl and Rohit Bansal. It started as a coupon booklet business, which was transformed into an online deals platform in 2010 and an online e-Commerce marketplace in 2012. Once a leading player in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from rivals Amazon and Flipkart.
The company, which is backed by Softbank, BlackRock Inc, Temasek Holdings Pte and eBay Inc, has been investing in video, vernacular and other strategic projects, aimed at growing the online market among new users, especially those coming in from tier II cities and beyond.
Those selling shares in the OFS are Starfish I Pte, Wonderful Stars, Sequoia Capital, Kenneth Stuart Glass, Myriad Opportunities Master Fund, Ontario Teacher’s Pension Plan Board, Laurent Amouyal and Milestone Trusteeship Services. Snapdeal’s founders Kunal Bahl and Rohit Bansal are not selling any of their holding in the IPO.
Proceeds from fresh issue would be used towards funding organic growth initiatives, expanding logistics capabilities, and enhancing the company’s tech infrastructure. Axis Capital, BofA Securities India, CLSA India and JM Financial are the book running lead managers to the issue.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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