Snapdeal Parent AceVector Gets SEBI Approval for IPO

AceVector, the parent company of ecommerce platform Snapdeal, has received approval from the SEBI for its initial public offering (IPO).

The company, founded by Kunal Bahl and Rohit Bansal, had submitted its draft red herring prospectus (DRHP) under the confidential filing route in July.

This route allows firms to keep certain details private in the early stages and offers flexibility in deciding the size of the issue. Companies using this method are allowed to revise the number of fresh shares by as much as half before submitting an updated draft prospectus.

AceVector operates several businesses apart from Snapdeal. It holds more than 28 percent in Unicommerce, a software based ecommerce enablement platform that is listed on the stock exchanges. It also runs Stellaro Brands which manages a portfolio of consumer labels.

The upcoming public issue will consist of a fresh issue of shares along with an offer for sale by existing investors. Major shareholders include SoftBank, Nexus Venture Partners and the two cofounders.

According to people familiar with the matter, IIFL and CLSA are working with the company as the book running lead managers for the offer.

Snapdeal has repositioned itself over the years as a marketplace focused on value conscious shoppers. The platform says more than 80 percent of its orders are priced below INR 599.

Unicommerce continues to expand its presence and serves more than 7,500 merchants across India and overseas. The platform reported annual recurring revenue of about INR 200 crore in the second quarter of the ongoing financial year, marking a 75 percent increase from the previous year.

Stellaro Brands is also working on increasing the visibility of its labels such as Rangita in southern markets.

With the latest approval, AceVector joins companies including Boat, Wakefit, Shadowfax, Curefoods, Shiprocket, Milky Mist and Capillary Technologies that have recently received market regulator approval for their IPO.