AceVector prices IPO at ₹32 per share, SoftBank-backed Starfish to gain ₹88.3 Cr
AceVector launched its ₹420 Cr IPO at ₹32 per share on September 29, with SoftBank’s Starfish I set to sell 2.76 Cr shares for ₹88.3 Cr. The issue drew 4.93 times subscription, with bids for 36.61 Cr shares.
The IPO consists of a ₹287 Cr fresh issue and an offer-for-sale of up to 4.16 Cr shares worth about ₹133 Cr at the upper price band. Proceeds from the fresh issue are earmarked for Snapdeal, allocating ₹132 Cr to marketing and business promotion and ₹50 Cr to technology infrastructure, with the remainder for acquisitions and general corporate purposes. Anchor investors Helios Mutual Fund and Taurus Ethical Fund together took 93.75 Lakh shares, or 15.87% of the anchor allocation. After the sale, Starfish will retain 11.3 Cr shares valued at roughly ₹361.8 Cr at the IPO price.
AceVector had earlier proposed a larger offer-for-sale but trimmed it by 34.9% to 4.16 Cr shares, with Starfish cutting its planned sale from 4.23 Cr to 2.76 Cr shares. The company raised ₹13 Cr via a pre-IPO placement, reducing the fresh issue from the originally planned amount to ₹287 Cr. Founded in 2010 by Kunal Bahl and Rohit Bansal as Snapdeal, the group pivoted after the failed Flipkart merger in 2017 and now runs Unicommerce and Stellaro Brands under the AceVector name adopted in 2022.
What we know
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.
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.
AceVector’s IPO closed on Tuesday (September 29), receiving 4.93X subscription.
Investors placed bids for 36.61 Cr shares against
The transaction represents a 5.42X return multiple, making it the highest return among selling investors.