Snapdeal Limited is were India’s biggest pure-play value eCommerce platform in regards of revenue for the Fiscal Year 2020. Snapdeal IPO will hit the market in April 2021.
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About Snapdeal
As of August 31, 2021, they are the most downloaded pure-play value eCommerce application and one of the top 4 online lifestyle purchasing destinations in India, with over 200 million app downloads on Google Play Store.
They began as a coupon booklet company in 2007, then between 2010 and 2012, they transitioned into an online deals platform and an online eCommerce marketplace. Snapdeal’s value proposition caters to the unique shopping requirements of ‘Bharat’ customers.
In the ‘Top Publisher Award 2020,’ App Annie recognised their platform among the top 10 shopping applications in India in terms of monthly active visitors for the year 2019.
Platform
Their platform offers a diverse range of products in a variety of lifestyle categories, including fashion, home and general items, beauty and personal care, and more.
They want to build a network of merchants who can provide their users with high-quality products at reasonable costs.
They service customers around the country, but their focus is on value consumers in the mid-income range who are mostly located in India’s Tier 2+ cities, which, as per RedSeer, account for the most of untapped value eCommerce shoppers.
RedSeer refers to these customers as ‘Bharat’ shoppers. For the six months ending September 30, 2021, the charts below show the amount of their platform’s business.
Vission & Mission
Their mission is to provide their consumers with the delight of realising their dreams through dependable, cost-effective buying. In addition, their goal is to become India’s omni-channel powerhouse in value lifestyle.
With this purpose in mind, they strive to give their consumers with a convenient online shopping experience and to ease their purchasing selections by displaying the most appropriate selection through personalisation, which is powered by machine learning.
They feel they have improved their competence in catering to the value section of the Indian eCommerce market over the previous few years.
This group consists of cost-conscious, middle-income shoppers who purchase on a tight budget. A considerable proportion of these users live in India’s Tier 2+ cities.
Snapdeal IPO
Snapdeal Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1,250 crores & 30,769,600 equity shares on 20 December 2021.
The offer includes a fresh issue of INR 1,250 crore and there is offer for sale (OFS) of 30,769,600 equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 250 crores in this issue.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 683.63 | 795.35 | 925.30 | 1,359.69 | |
| Total Revenue | 252.84 | 510.27 | 916.66 | 925.32 | |
| Loss After Tax | (177.08) | (125.44) | (273.54) | (188.03) | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | (3.18) | (3.18) | 3 |
| Financial Year 2020 | (6.94) | (6.94) | 2 |
| Financial Year 2019 | (7.23) | (7.23) | 1 |
| Weighted Average | (5.11) | (5.11) | |
| 30 Sep. 2021 | (4.49) | (4.49) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
- The nation’s biggest pure-play value eCommerce platform is based in India.
- A platform of quality-focused vendors offers a large selection of value merchandise at reasonable rates.
- Value shoppers may find suitable and fascinating products on their website thanks to a discovery-led and personalised purchase trip powered by artificial intelligence and machine learning.
- Asset-light and technology-backed transportation, such as the UniMove Logistics Platform, provide for greater control, better user experience, and lower pre-delivery returns, all of which contribute to favourable unit economics.
- For fresh and initial internet shoppers, high-touch, easy-to-reach, and multilingual customer support is essential.
- With fewer external variables and reduced running costs, a proprietary technology stack custom-built for the requirements of value eCommerce.
- Strong governance, seasoned management, and well-known investors.
Peer Comparison
There are no publicly traded firms in India that operate in a similar industry to theirs. As a result, providing an industry comparison in regard to their Company is not possible.
Snapdeal IPO Details
| IPO Opening Date | April 2021 |
| IPO Closing Date | April 2021 |
| Issue Type | Book Building |
| Face Value | 1 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | – Crores |
| Fresh Issue | 1,250 Crores |
| Offer for Sale | 30,769,600 |
Snapdeal IPO Date
Snapdeal IPO opening date is April 2021, and the closing date is April 2021. The Snapdeal issue may list in April 2021.
| IPO Opening Date | April 2021 |
| IPO Closing Date | April 2021 |
| Basis of Allotment Date | April 2021 |
| Initiation of Refunds | April 2021 |
| Credit of Shares to Demat Account | April 2021 |
| IPO Listing Date | April 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Snapdeal Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Snapdeal IPO.
Snapdeal IPO GMP
Snapdeal IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
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Check Out the GMP of all Other IPOs
Snapdeal IPO Review
Snapdeal IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Snapdeal IPO is good or bad.
Snapdeal IPO Risk
- Their attempts to attract new users and keep existing users may not be successful or cost more than they anticipate, preventing them from sustaining or expanding revenue.
- They’ve had losses in the past, and they may do so again in the future.
- The growth of India’s online commerce industry, as well as their capacity to successfully react to changing consumer behaviour on online platforms, are critical to overall success.
- They may be held liable if they sell counterfeit, unlicensed, unlawful, or infringing products, or if they provide false information on their platforms.
- The Google Play Store and the Apple Phone Store are where they offer and advertise their app.
Other Threats
- They work in a highly competitive sector, and their inability to keep up successfully could threaten their company’s success.
- At their current scale, they have a short operational history, which may make evaluating their business challenging.
- Epidemics, such as the existing COVID-19 pandemic, may have a negative impact on their business.
- Their technical infrastructure, as well as those of our third-party providers, is vulnerable to cyber-attacks and security breaches.
- Their business’s success is dependent on the efficiency, dependability, and other third-party providers.
- Their reputation may be affected by their use of social media, emails, and text messages.
Market Segment
They feel that their brand is synonymous with low-cost eCommerce, and that value-conscious customers turn to them not only for low-cost items, but also for high-quality items and the current trends that can meet their idealistic demands.
They have had excellent unit economics, i.e. contribution margin per delivered unit, over the past three Financial Years and the six months ending September 30, 2021, as a result of their experience in this area.
The value lifestyle eCommerce section is characterised by high barriers to scale, due to the requirement develop market condition over time to satisfy the demands of value users through customised technology, building a dependable base and substantial marketing expenses towards user acquisition.
Changes in Operations
Their vast user base, exclusive emphasis on the demands of value clients, and technology, they believe, give us a major competitive edge and enable us to develop network effects at scale.
They make the majority of their money through marketing costs, freight, and collection fees that they charge their sellers.
In April 2021, they decided to stop charging the purchasers shipping or cash-on-delivery fees and instead offer free shipping in order to attract new customers and increase their delivered units and revenue.
The number and amount of units sold on their platform determines their revenue. The delivered pieces for the last seven quarters were 4.77, 3.55, 6.14, 4.26, 4.61, 6.36, and 8.59 million.
Capacities
They provide an eCommerce platform for value-seeking yet aspirational individuals that can be accessed easily on their mobile phones via their app or their mobile-optimized website. Their platform’s merchants provide high-quality clothing that follows the newest trends and is reasonably priced.
Their portal offers a diverse assortment of low-cost items in a variety of segments, including fashion, home and general merchandise, beauty and personal care, and more.
They’ve improved their capacities over time to cater to value-conscious customers. They accomplish this by offering a seamless, end-to-end marketplace that includes product listings, fulfilment, and customer service, all of which are backed by technology and data analytics.
Snapdeal IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Snapdeal IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| April 2021 | 1 | |||||
| April 2021 | 2 | |||||
| April 2021 | 3 |
Management & Investors
Their company has been established by a leadership team led by the founders, who have appropriate expertise and complementing skill sets.
Kunal Bahl and Rohit Kumar Bansal, the company’s cofounders, established the company as a coupon booklet business in 2007, shifted to an online deals portal in 2010, and then spearheaded the company’s development into a product marketplace in 2012.
Their cofounders have a wealth of experience in the eCommerce and technology sectors. eBay, Intel Capital, BlackRock, Temasek, SoftBank, PremjiInvest, and RNT Associates Private Limited (sponsored by Ratan Tata) are among their notable investors, with some of them having invested in them since 2013.
They benefit from their marquee shareholders’ strong capital sponsorship, professional knowledge, and strategic business counsel.
Principal Shareholder
- Starfish I Pte. Ltd
Promoters’s Holding
| Pre Issue Share Holding | 35.41% |
| Post Issue Share Holding |
Snapdeal Prospectus
Contact Details
Snapdeal Limited
SproutBox Suryavillas, Suite # 181 TR -4,
First Floor D-181, Okhla Industrial Area,
Phase I, New Delhi – 110020
Tel:+91 11 40366529
E-mail: [email protected]
Website: www.snapdeal.com
Registrar
Link Intime India Private Limited
C 101, 247 Park L.B.S. Marg
Vikhroli (West), Mumbai 400 083
Maharashtra, India
Telephone: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Axis Capital Limited
- BofA Securities India Limited
- CLSA India Private Limited
- JM Financial Limited
We hope we are able to answer all your questions about Snapdeal IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
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Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
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Note:
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FAQ
Snapdeal IPO Opening Date?
Snapdeal IPO will open in April 2021.
Snapdeal IPO Listing Date?
Snapdeal IPO will list in April 2021.
Snapdeal IPO GMP Today?
Snapdeal IPO Grey Market Premium is INR 0 .
Snapdeal IPO Allotment Date?
Snapdeal IPO basis of allotment will be in April 2021.
Lot size for Snapdeal IPO?
Lot size for Snapdeal IPO is 0.
