BENGALURU (Reuters) – SoftBank-backed Indian e-commerce platform Snapdeal filed for an initial public offering on Tuesday, joining dozens of firms in the country that have tapped the capital markets this year.
Several SoftBank-backed companies and many popular names such as payments platform Paytm, beauty e-commerce retailer Nykaa and food delivery platform Zomato have sought a 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 fresh issue of shares worth 12.5 billion rupees ($165.09 million) and an offer for sale of 30.8 million shares, according to its draft prospectus dated Dec. 20.
New Delhi-based Snapdeal, started in 2010 by Wharton alumnus Kunal Bahl and Indian Institute of Technology, Delhi graduate Rohit Bansal, competes with bigger rivals such as Walmart-owned Flipkart and Amazon.com Inc in India.
Snapdeal potentially faces stiff competition from Reliance Industries, which is rapidly expanding in 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 a part of their stakes in the IPO.
Snapdeal plans to use proceeds from the IPO for organic growth initiatives, the filing showed.
($1 = 75.7180 Indian rupees)
(Reporting by Chandini Monnappa in Bengaluru; Editing by Shounak Dasgupta)
