Snapdeal files draft IPO papers with SEBI, plans to raise more than Rs 1,250 crore

Softbank-backed e-commerce platform Snapdeal filed for an IPO (Initial Public Offering) today.

Snapdeal IPO
Snapdeal owns and operates an online e-commerce platform.

Softbank-backed e-commerce platform Snapdeal filed for an IPO (Initial Public Offering) today. The company is looking to raise Rs 1,250 crore through a fresh issue of equity shares and an offer for sale (OFS) of 3.1 crore equity shares by existing shareholders of the company. Selling shareholders include Sequoia Capital, Kenneth Stuart Glass, Starfish I, Myriad Opportunities Master Fund, among others. According to the DRHP, Softbank will also be trimming its stake through the planned IPO. The company said it may raise Rs 250 crore through a pre-IPO placement.

Snapdeal owns and operates an online e-commerce platform, offering products ranging from mobile phones, televisions, gaming consoles, fashion accessories, fur shining items, appliances, beauty products, and much more. The company was started by Kunal Bahl and Rohit Bansal who are currently the Chief Executive Officer and Chief Operating Officer of the company, respectively. So far the company has gone through 12 rounds of fundraising, according to S&P Capital IQ.

75% of the issue will be reserved for Qualified Institutional Buyers (QIB) while 10% is for retail investors and the remaining 15% is booked for Non-Institutional Investors (NII). Snapdeal said that it plans to use the funds raised through the IPO for funding organic growth initiatives and general corporate purposes.

Snapdeal will join the growing list of internet companies going public. In recent months, Dalal Street has seen the listing of Zomato, Nykaa, PolicyBazaar, Paytm, and CareTrade Technologies. Some of these have been backed by SoftBank as well.

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