Softbank-backed Snapdeal has filed documents for a Rs 1,250 crore public offering. According to the draft red herring prospectus (DRHP), there is also an offer for sale of nearly 30 million equity shares by current shareholders.

Also Read| Sebi suspends futures trade in key farm commodities to combat inflation

Softbank will participate in the OFS for a partial exit alongside seven stakeholders, including Foxconn, Sequoia Capital, and the Ontario Teachers’ Pension Plan Board. This equates to approximately 8% of the company’s pre-offer equity share capital.

Snapdeal has 71 stockholders. While Softbank owns 35.41% of the firm, founders Kunal Bahl and Rohit Bansal own 20.28%. No stake is being diluted by the two founders.

Also Read| Global M&A activity breaks all-time record levels in 2021

The proceeds of the public offering will be utilized to fund expansion plans, develop logistical capabilities, and improve the company’s technical infrastructure.

The issue’s book running lead managers are Axis Capital Ltd, BofA Securities India Ltd, CLSA India Pvt Ltd, and JM Financial Ltd.

Snapdeal primarily targets middle-income, price-conscious shoppers who dwell in smaller Indian cities. Outside of metropolitan cities, it receives more than 86% of its orders.

Also Read| CMS Info Systems IPO opens on December 21: All you need to know about the offer

In a blog post last week, founder Kunal Bahl stated that the firm is a brand that is not well known in the urban sub-conscious. Bahl was discussing what he saw to be a crucial topic among urban Indians: “But, who buys from Snapdeal?”

Snapdeal was preparing to enter the offline market with the opening of partner stores in small towns across India, with the goal of attracting and catering to what is known as Bharat.

Also Read| Reddit confidentially files for US IPO

In January, the first Snapdeal partner shop will open. The organization intends to progressively increase the number to around 25 by the end of 2022.

According to the DRHP, Snapdeal’s Net Merchandise Value (NMV) has increased by 82.48% in the previous two quarters, rising from Rs 205 crore in the fourth quarter of FY21 to Rs 374 crore in the second quarter of FY22.

Also Read| Byju’s in talks to go public via SPAC deal

Unicommerce, Snapdeal’s wholly-owned subsidiary, received investment from Softbank for a 30% stake prior to the IPO.