E-commerce platform Snapdeal has filed preliminary documents with markets regulator Sebi to raise funds through an init🧸ial public offer (IPO), joining the league of internet-led businesses looking to list on domestic stock ex﷽changes.
The public issue comprises fresh issuance of equity shares worth Rs 1,250 crore and an offer for sale (OFS) of 3.07 crore equity shares, according to the draft red herring prospe🐎ctus (DRHP).
According to market sources, a ꦓpotential listing could value Snapdeal at about $1.5-1.7 billion.
Snapdeal's founders Kunal Bahl and Rohit Bansal are not sellin𝔍g any of their holding in the IPO.
Those selling share✅s 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.
Proce𓆉eds from the fresh issue would be used towards funding organic growth initiatives, expanding logistics cap🌳abilities, 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.
A stellar response to Zomato's IꦇPO and a profitable listing in July has prompted many 🌄internet-led businesses to make a beeline for this route.
Since then some internet-led businesses, inclu꧅ding Nykaa, Paytm and PolicyBazaar got listed on the exchanges too. However, Paytm -- one of the most awaited IPOs -- witnessed a lackluster listing.
Snapdeal is an e-commerce company, and focuses exclusively on the vಌalue segment, with more than 90 per cent of the products sold on the platform priced below Rs 1,000 and more than 80 per cent of its us🅰ers residing beyond the metro cities.
Once a leading player in the Indian e-commerce space, Snapdeal has seen its for💙tunes falling amid strong competition from rivals Amazon and Flipkart.
In 2017, Snapdeal walked away from a potential merger deal with Flipkarღt and instead pursued what it called the ''Snapdeal 2.0'' strategy to become🐟 "financially self-sustainable".
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 amon🥃g new users, especially those coming in from tier II cities and beyond.
The company's Power Brands, UniMove logistics platform, multi-lingual user💯 support and its discovery-based shopping approach that r🃏eplicates the offline journey of buyers are some of the capabilities built by it as part of its Bharat-focused strategy.
As part of its expansion plans, Snapdeal plans to expand into omni-channel distribution through partner-driven offline stores. The offline channels accounted for 92 per cent of all sales in the value lifestyle retail market, as of the ꦦfinancial year 2021.
