Snapdeal's parent AceVector files confidential draft IPO papers with Sebi

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AceVector, parent company of e-commerce marketplace Snapdeal, has confidentially filed draft papers with markets regulator Sebi to raise funds through an initial public offering (IPO).

In a public announcement on Saturday, AceVector stated that it has submitted "the pre-filed draft red herring prospectus with Sebi and the stock exchanges ...in relation to the proposed initial public offering of its equity shares on the main board of the stock exchanges".

Apart from Snapdeal, the Gurugram-based AceVector also operates software-as-a-service (SaaS) platform Unicommerce, and consumer brand building firm Stellar Brands.

Of these, Unicommerce became a publicly listed company in 2024. The company's IPO had received an overwhelming response, with the issue having been oversubscribed 168.32 times.

AceVector, which is founded by Kunal Bahl and Rohit Bansal, opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

In recent months, several companies, including INOX Clean Energy, logistics service provider Shadowfax Technologies, stock broking firm Groww, Gaja Alternative Asset Management, commerce enablement platform Shiprocket, Tata Capital, edtech unicorn PhysicsWallah and Imagine Marketing, the parent company of wearables brand boAt, chose confidential filings.

In 2024, food delivery giant Swiggy and retail chain Vishal Mega Mart floated their IPOs following similar filings.

Market experts note that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. Unlike the traditional route, which requires companies to launch their IPOs within 12 months of receiving Sebi's approval, the pre-filing route extends this window to 18 months from the receipt of final comments. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage.