SoftBank-backed e-commerce platform Snapdeal filed an initial public offering on Tuesday, joining dozens of companies in the country that have tapped into capital markets this year.
Several SoftBank-backed companies and many popular names such as payment platform Paytm, beauty e-commerce retailer Nykaa and food delivery platform Zomato have sought listing in India this year as ample liquidity and strong retail participation pushed the stock market to record levels.
Snapdeal’s IPO consists of a new share issue worth Rs 1,250 crore and an offer to sell 30.8 million shares, according to the draft prospectus dated December 20.
Founded in 2010 by Wharton alumnus Kunal Bahl and Indian Institute of Technology, Delhi-based Rohit Bansal, New Delhi-based Snapdeal competes with bigger rivals such as Flipkart, which is owned by Walmart and Amazon.com Inc in India.
Snapdeal may face stiff competition from Reliance Industries, which is rapidly expanding into the online market space.
While founders Bahl and Bansal are not selling their stakes, investors SoftBank, Foxconn, Sequoia Capital and Ontario Teacher’s Pension Plan Board have offered to sell some of their stake in the IPO.
Snapdeal plans to use the proceeds from the IPO for organic growth initiatives, the filing revealed.