By Bharat Fast News Desk
AceVector Ltd, the parent of Snapdeal, has listed its Rs 420 crore IPO. SoftBank entity Starfish I Pte Ltd took home about Rs 88.3 crore from the offer-for-sale (OFS) component. The figure comes from the company’s red herring prospectus (RHP).
IPO structure
The issue had a fresh issue of Rs 287 crore and an OFS of up to 4.16 crore shares. The OFS was worth about Rs 133 crore at the upper end of the price band of Rs 30 to Rs 32. At the issue price, the IPO valued AceVector at Rs 1,741 crore.
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AceVector had proposed a larger OFS. It was trimmed by 34.9% to 4.16 crore shares, according to the RHP. A Rs 13 crore pre-IPO placement brought the fresh issue down to Rs 287 crore. The IPO opened on 25 September and was fully subscribed on its second day. Allotment was completed on 30 September, the company said.
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Indian consumer internet companies have had a mixed run on the bourses this year. Quick commerce is expanding fast, while smaller rounds keep the startup funding market busy.
Investor exits
The table below sets out the exits disclosed in the RHP. Starfish I accounted for roughly two-thirds of the OFS proceeds, according to the prospectus.
The exits disclosed in the RHP vary sharply. Kenneth Stuart Glass earned the highest return multiple. He sold 13.2 lakh shares for Rs 4.2 crore at 5.42X. Laurent Bernard Amouyal sold 2.2 lakh shares for Rs 72 lakh at 4.38X. FIH Business Global sold 17.4 lakh shares for Rs 5.6 crore. Starfish I’s 0.08X sits at the other end of the scale.
Starfish I remains AceVector’s largest shareholder. It holds 11.3 crore shares. At the issue price they are worth about Rs 361.8 crore, according to the RHP. Among individual sellers, Glass recorded the highest return multiple. He retains 30.7 lakh shares, worth about Rs 9.8 crore, as per the prospectus.
Nexus and other sellers
Three Nexus entities together sold 86.9 lakh shares, according to the RHP. Nexus Opportunity Fund Ltd sold 8.4 lakh shares for Rs 2.6 crore. That was a 0.14X multiple. Nexus Ventures III sold 4.6 lakh shares for Rs 1.4 crore at a 0.07X multiple. Nexus India Direct Investments II retains 3 crore shares, valued at about Rs 96.7 crore.
Rupen Investment and Industries and Centaurus Trading each sold about 2.7 lakh shares, according to the prospectus. Each sale fetched roughly Rs 86 lakh. Jason Ashok Kothari, former Snapdeal chief strategy and investment officer, sold 11.1 lakh shares for Rs 3.5 crore. That was a 0.78X multiple. He retains 11.1 lakh shares worth about Rs 3.5 crore, as per the RHP.
Use of fresh capital
AceVector said the fresh capital is largely earmarked for Snapdeal. It plans to spend Rs 132 crore on marketing and business promotion. Another Rs 50 crore goes to technology infrastructure. The remaining proceeds are intended for acquisitions, according to the company.