Snapdeal parent AceVector’s initial public offering (IPO) is set to provide an exit opportunity to several of its early investors and promoters, with SoftBank-backed Starfish I Pte Ltd set to be the biggest beneficiary of the offer-for-sale (OFS) component.
At the issue price of ₹32 per share, Starfish I, a SoftBank entity and the company’s largest shareholder, raked in about ₹88.3 Cr by selling 2.76 Cr shares, representing about two-thirds of the total OFS proceeds. The transaction represents an 0.08X return multiple on the shares being sold, according to AceVector’s red herring prospectus (RHP).
Starfish will continue to hold 11.3 Cr shares, valued at about ₹361.8 Cr at ₹32 apiece, after the IPO.
AceVector’s ₹420 Cr IPO comprises a fresh issue of ₹287 Cr and an OFS of up to 4.16 Cr shares worth about ₹133 Cr at the upper price band, valuing the company at ₹1,741 Cr at ₹32 per share.
Nexus Sees Mixed Returns Across Funds
AceVector’s IPO also marks a partial exit for Nexus Venture Partners, although returns vary significantly across its investment vehicles.
Nexus India Direct Investments II sold 73.9 Lakh shares for ₹23.6 Cr, representing a 1.03X return multiple. The fund will retain 3 Cr shares worth about ₹96.7 Cr at the IPO price.
Meanwhile, Nexus Opportunity Fund Ltd sold 8.4 Lakh shares for ₹2.6 Cr, representing a 0.14X return multiple, while Nexus Ventures III sold 4.6 Lakh shares for ₹1.4 Cr at a 0.07X multiple.
Together, the three Nexus entities are selling 86.9 Lakh shares, however, the investor failed to book a positive return across the funds.
Other selling shareholders include FIH Business Global, Rupen Investment and Industries and Centaurus Trading and Investments. FIH will sell 17.4 Lakh shares for ₹5.6 Cr, while Rupen Investment and Centaurus will each sell 2.7 Lakh shares for about ₹86 Lakh.
Individual investors See Multi-Bagger Returns
The sharpest returns in the data were booked by individual shareholders instead. For instance, Kenneth Stuart Glass sold 13.2 Lakh shares for ₹4.2 Cr at ₹32 apiece. The transaction represents a 5.42X return multiple, making it the highest return among selling investors.
Glass will still hold 30.7 Lakh shares, worth about ₹9.8 Cr at the IPO price.
Meanwhile, Laurent Bernard Amouyal booked a substantial return of investment after selling 2.2 Lakh shares for ₹72 Lakh, representing a 4.38X return multiple. He will retain 5.2 Lakh shares worth around ₹1.7 Cr.
On the other hand, former Snapdeal chief strategy and investment officer Jason Ashok Kothari sold 11.1 Lakh shares for ₹3.5 Cr, with a 0.78X return multiple, while retaining another 11.1 Lakh shares valued at ₹3.5 Cr.
AceVector had earlier proposed a substantially larger OFS, but trimmed the component by 34.9% to 4.16 Cr shares. Starfish alone reduced its proposed sale from 4.23 Cr shares to 2.76 Cr.
The company raised ₹13 Cr through a pre-IPO placement, which brought down the fresh issue to ₹287 Cr. The fresh capital is earmarked largely for Snapdeal, including ₹132 Cr for marketing and business promotion and ₹50 Cr for technology infrastructure, while the remaining proceeds are intended for acquisitions and general corporate purposes.
Founded in 2010 by Kunal Bahl and Rohit Bansal, AceVector started off as ecommerce platform, Snapdeal. Following the collapse of its proposed merger with Flipkart in 2017, it pivoted to a value-focused ecommerce model.
Besides Snapdeal, AceVector’s businesses include listed ecommerce SaaS company Unicommerce and consumer brands business Stellaro Brands. The group adopted the AceVector identity in 2022.
Ahead of opening the public issue for subscription, AceVector raised ₹189 Cr from anchor investors. Helios Mutual Fund and Taurus Ethical Fund were the only domestic mutual funds to participate, together picking up 93.75 Lakh shares, or 15.87% of the anchor allocation.
AceVector’s IPO closed on Tuesday (September 29), receiving 4.93X subscription. Investors placed bids for 36.61 Cr shares against 7.42 Cr shares on offer.
On the financial front, AceVector’s restated net loss narrowed nearly 64% to ₹45.5 Cr in FY26 from ₹126.3 Cr in FY25. Operating revenue rose 29.2% to ₹510.3 Cr from ₹395 Cr.
The post AceVector IPO: SoftBank To Pocket ₹88 Cr; Individual Investors Book Up To 5.4X Return appeared first on Inc42 Media.
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