Snapdeal parent firm Acevector pre-filing draft document clears by SEBI, paving the way for Updated DRHP filing ahead of IPO

Kunal Bahl and Rohit Bansal-founded Acevector, the parent company of the e-commerce marketplace Snapdeal, has received approval from the SEBI for its Pre-filing Draft Red Herring Prospectus (DRHP) filed via confidential route for fund raising via initial public offering (IPO). Media reports indicated that the company may be looking to mobilise Rs 500 crore via initial share sale.

The company has approached capital markets in July this year for its IPO plans and confidentially filed DRHP with the regulator. It is a step before filing the Updated DRHP, which is available in the public domain, with the SEBI, and then Red Herring Prospectus (RHP) with the Registrar of Companies. Additionally, firms can modify the primary issue size by up to 50 per cent until the updated DRHP stage.

The SEBI has issued observations on the Pre-filing DRHP on November 11. Now the company has 18 months period to go ahead with its IPO plans, first is filing of Updated DRHP with the SEBI, followed by RHP filing for IPO launch. In the normal course, the company that files DRHP with the SEBI, which is available in the public domain, gets one year period after observation letter to file RHP.

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