Snapdeal Defers Rs 1,250 Crore IPO Plan Citing Current Market Situation
Snapdeal spokesperson said the company may reconsider an IPO in the future, depending on its need for growth capital and market conditions.
New Delhi: E-commerce firm Snapdeal on Friday said it has deferred its plan for IPO through which it was planning to issue fresh equity shares worth Rs 1,250 crore amid weak market conditions. Earlier, the company had announced placing over 3 crore shares for an offer for sale under its IPO plan. However, Snapdeal has not decided on any fresh timeline for the IPO.
Giving details to news agency PTI, Snapdeal spokesperson said that considering the prevailing market conditions, the company has decided to withdraw the DRHP. The company may reconsider an IPO in the future, depending on its need for growth capital and market conditions, he added.
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Market sources at the time of filing the draft paper with the Securities and Exchange Board of India (Sebi) had indicated the company is looking at a valuation of over USD 1.5 to 1.7 billion.
Under the offer, Starfish I Pte, Wonderful Stars, Sequoia Capital, Kenneth Stuart Glass, Myriad Opportunities Master Fund, Ontario Teacher’s Pension Plan Board, Laurent Amouyal and Milestone Trusteeship Services were selling their shares.
However, Snapdeal’s founders Kunal Bahl and Rohit Bansal were not selling their holdings in the IPO.
Once a leading player in the Indian e-commerce space, Snapdeal has seen its fortunes falling amid strong competition from rivals Amazon and Flipkart.
In the meantime, Snapdeal has announced its plans to expand into omnichannel distribution through partner-driven offline stores.
(With inputs from PTI)
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