Snapdeal IPO: 2021 was the year of IPOs and the stock market. And, now it looks like 2022 is also going to be like that. In such a situation of IPOs and Investing, there is good news for those who invest in IPO. IPOs of many big companies have been launched this year, and now another big IPO is ready to come, where investors can earn money. We are talking about the e-commerce platform Snapdeal IPO. The company plans to raise Rs 1250 crore through IPO.
Snapdeal applied to SEBI for IPO
Snapdeal, one of the largest e-commerce platforms in the country, has gone ahead with its IPO. The company has applied for an IPO with the market regulator SEBI. According to the draft red herring prospectus (DRHP), the IPO comprises a fresh issue of Rs 1,250 crore and an offer for sale of 3.07 crore equity shares. According to a report released in this regard, the capital raised from the IPO will be used to finance expansion plans and for general corporate purposes. On the other hand, Axis Capital, BofA Securities India, CLSA India and JM Financial are the book running lead managers to the issue.
Snapdeal IPO portion reserved for retail investors
In Snapdeal’s IPO, 75 per cent will be reserved for qualified institutional investors (QIBs), while 10 per cent will be reserved for retail investors and the remaining 15 per cent for non-institutional investors (NIIs). The company has raised funds about 12 times so far. Snapdeal has a good number of customers across the country, but it dominates in Tier 2 cities. Ahead of the IPO, Snapdeal’s wholly-owned subsidiary Unicommerce has secured investment from SoftBank to acquire around 30 per cent stake.
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Snapdeal was established in 2010
Let us tell you that Snapdeal was established in the year 2010. At one time this company was giving competition to the biggest e-commerce platform Amazon and Flipkart, but gradually this company was lagging. In the fiscal year ended March 2021, Snapdeal’s revenue from operations fell 44 per cent to Rs 4.7 billion. Apart from Snapdeal, the IPO of Walmart-owned e-commerce company Flipkart is also set to launch and is expected to be launched in November or December next year.
How much money Snapdeal is going to raise from Snapdeal IPO?
The company plans to raise Rs 1250 crore through IPO.
How Snapdeal will use its fundraised by IPO?
According to a report released in this regard, the capital raised from the IPO will be used to finance expansion plans and for general corporate purposes.
Snapdeal IPO Distribution, and what per cent of shares are reserved for retail investors?
In Snapdeal’s IPO, 75 per cent will be reserved for qualified institutional investors (QIBs), while 10 per cent will be reserved for retail investors and the remaining 15 per cent for non-institutional investors (NIIs).
Every investor should do their research before investing in an IPO.