Snapdeal's parent company files papers with SEBI for an IPO
What's the story
AceVector, the parent firm of popular e-commerce platform Snapdeal, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The Gurugram-based firm also runs Unicommerce, a software-as-a-service (SaaS) platform, and Stellar Brands. In 2024, Unicommerce went public with an IPO that was oversubscribed by 168.32 times.
Filing strategy
Confidential pre-filing route chosen for IPO
Founded by Kunal Bahl and Rohit Bansal, AceVector has opted for a confidential pre-filing route. This strategy lets companies keep IPO details under wraps until later stages in the draft red herring prospectus (DRHP). The move is becoming popular among Indian firms who are looking for flexibility in their IPO plans. Recently, INOX Clean Energy, Shadowfax Technologies, Groww, Gaja Alternative Asset Management, Shiprocket and Tata Capital also opted for confidential filings.
Reasons
Advantages of confidential pre-filing
The confidential pre-filing route is gaining traction as it gives companies more flexibility and less pressure to go public quickly. Unlike the traditional route that mandates firms to launch their IPOs within 12 months of SEBI's approval, this new method extends the window to 18 months from receipt of final comments. Companies can also change the primary issue size by up to 50% until the updated DRHP stage.