E-commerce platform Snapdeal has filed a complaint Initial Public Offering (IPO) Markets regulator Securities and Exchange Board of India (Sebi) on Tuesday joined dozens of firms in the country that have tapped the capital market this year.
Public issue involves fresh issue of equity shares Offer for sale (OFS) of 1,250 crore and 3.07 crore equity shares, as per the draft Red Herring Prospectus (DRHP). Snapdeal’s IPO, which is targeted early next year, comes after a record year for its Indian market debut.
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 fall in the face of strong competition. Rivals Amazon and Flipkart.
The company, which is backed by SoftBank, BlackRock Inc., Temasek Holdings Pte. and eBay Inc., is investing in video, vernacular and other strategic projects aimed at growing the online market among new users, particularly in Tier II cities. To come from and beyond.
Those who sold shares in the OFS include Starfish I Pte., Wonderful Stars, Sequoia Capital, Kenneth Stuart Glass, Myriad Opportunities Master Fund, Ontario Teachers Pension Plan Board, Laurent Amouil and Milestone Trusteeship Services. Snapdeal founders Kunal Bahl and Rohit Bansal are not selling any stake in the IPO.
The proceeds from the fresh issue will be used to finance organic growth initiatives, expand logistics capabilities and enhance the company’s technical infrastructure. Axis Capital, BofA Securities India, CLSA India and JM Financial are the book running lead managers of the issue.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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