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Online retailer Snapdeal has abandoned a planned initial public offering, the latest in a string of companies amid a rout in technology stocks globally.

Snapdeal had filed its draft red herring prospectus (DRHP ) with the Securities and Exchange Board of India (Sebi) in December last year for the share sale. This followed the public listings of several homegrown tech firms such as Paytm, Zomato, Nykaa and Nazara Tech.

“Considering the prevailing market conditions, the company has decided to withdraw the DRHP. It may reconsider an IPO in future depending on its need for growth capital and market conditions," a spokesperson for Snapdeal said.

The market regulator was still to approve the IPO plan.

The SoftBank-backed firm joins startups such as BoAt, PharmEasy and Droom, among others who have shelved IPO plans.

Snapdeal was aiming for a primary issuance of shares worth 1,250 crore, according to the draft prospectus. It was also looking to sell more than 30.76 million shares of existing investors through an offer for sale.

Snapdeal’s largest shareholder, Japan’s SoftBank, owns a 35.67% stake via its affiliate Starfish Pte. Ltd, was expected to sell up to 24 million shares, while another shareholder, Taiwanese chip maker Foxconn’s affiliate Wonderful Stars Pte Ltd, planned to sell up to 2.97 million shares. The other selling shareholders included Canada’s Ontario Teacher’s Pension Plan Board, Myriad Opportunities Master Fund and Sequoia Capital.

Snapdeal planned to use 900 crore of the IPO proceeds to fund organic growth initiatives and the rest for general corporate purposes. Axis Capital, JM Financial Ltd, CLSA India and BoFA Securities India were hired to manage the share sale.

Founded by Kunal Bahl and Rohit Bansal, Snapdeal began as a coupon booklet business which was transformed into an online deals platform in 2010 before turning into an e-commerce marketplace in 2012.

It competes against Walmart-owned Flipkart, Amazon, and social commerce platform Meesho, among others.

Consolidated operating revenue fell 44% to 471.8 crore in fiscal 2021 while losses more than halved to 125.4 crore from 274.3 crore in FY20. It is yet to publish its FY22 results.

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