Snapdeal IPO

About Snapdeal IPO

After shelving its IPO plan earlier, AceVector, the parent company of Snapdeal, has filed papers with market regulator Sebi for its initial public offering via the confidential route. The total issue size of the IPO is pegged at ₹500 crores and will comprise a fresh issue of shares along with an offer for sale. The move comes after more than two and half years when Snapdeal withdrew its ₹1250 crores IPO plan citing adverse market conditions.

Founded in 2010, Snapdeal was once a major player in the Indian e-commerce market. However, it lost momentum and was on the verge of a shutdown at one point. However, thanks to its shift to value ecommerce, it gradually came back on track.

Objectives of Snapdeal IPO

TBA

Industry Outlook

According to a joint report by ANAROCK and ETRetail, India's e-commerce industry is projected to reach USD550 billion by 2035. The growth will primarily be propelled by increasing internet penetration, smartphone adoption and enhanced digital payment infrastructure, along with key government initiatives like Digital India. Also, increasing the participation of consumers from smaller cities is a key driver of this expansion.

Company Information

Once among India's leading e-commerce marketplaces, Snapdeal has now adopted a more value-conscious approach, with a tier II and tier III-focused strategy. It has also built Stellaro, which happens to be a private label portfolio focusing on affordable fashion and home categories.

Strengths of Snapdeal

• Strong banding and continuous innovation
• Large network of retailers

Risks of Snapdeal IPO

• Intensely competitive market
• Total reliance on online resources

**Anchor Investor Bidding Date ** TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: TBA
• Book Running Lead Managers: TBA

Business Model

The primary revenue streams of Snapdeal include marketing services, e-commerce enablement and other ancillary sources. It has a marketplace business model linking consumers with sellers. It charges sellers for using its platform and also earns revenue from advertising.

Company Growth Trajectory

The operating income of Snapdeal stood at ₹379.76 crores in FY 24, up by 2.1% from ₹371.96 crores in FY 23. The firm's improved performance was visible in the 43.2% reduction of loss to ₹160.38 crores in FY24. Its total expenditure dropped by 21.4% to ₹540.76 crores in FY 24 from ₹687.93 crores in FY 23.

Market Position

As per estimates, Snapdeal has over 40 million monthly active users and over 550 million monthly page views with an exclusive focus on value selection. The firm earns more than 77% of its revenues from repeat customers, with 86% of its orders coming from outside metro cities.

How to Check Allotment Status of Snapdeal IPO?

1. Visit the Registrar’s Website

Visit the registrar’s website and find out the IPO allotment status link. Click on it and enter either your PAN, DP ID or application number. Click on ‘Submit’ button to know the status.

2. Check on the National Stock Exchange Website

The National Stock Exchange (NSE) website has an IPO bid verification module. You can use it to check the allotment status of Snapdeal IPO. Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO bid verification page, enter:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

3. Check on the BSE Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
  
• Choose 'Snapdeal' in the next dropdown
  
• Enter your application number
  
• Enter your PAN
  
• Click 'Search’ to know allotment status
  

How to Apply for the Snapdeal IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.