Snapdeal has shelved its plan for an IPO in which it planned to issue new equity shares worth Rs 1,250 crore due to weak market conditions, according to the company. The company had previously announced the placement of over 3 crore shares for an initial public offering (IPO).
Market sources indicated that the company is looking at a valuation of more than $ 1.5 to 1.7 billion at the time of filing the draught paper with the Securities and Exchange Board of India (Sebi).
Shares were being sold under the offer by Starfish I Pte, Wonderful Stars, Sequoia Capital, Kenneth Stuart Glass, Myriad Opportunities Master Fund, Ontario Teacher's Pension Plan Board, Laurent Amouyal, and Milestone Trusteeship Services. Snapdeal founders Kunal Bahl and Rohit Bansal, on the other hand, were not selling their shares in the IPO.
Snapdeal, once a dominant player in the Indian e-commerce market, has seen its fortunes dwindle in the face of fierce competition from rivals Amazon and Flipkart.
Snapdeal walked away from a potential merger with Flipkart in 2017 and instead pursued the 'Snapdeal 2.0' strategy to become "financially self-sustaining." Snapdeal has announced plans to enter the omnichannel distribution space through partner-driven offline stores.