IPO-Bound AceVector Nets ₹189 Cr From Anchor Investors

Snapdeal parent AceVector has raised ₹189 Cr from anchor investors ahead of the opening of its initial public offering (IPO) tomorrow (September 25).

The company allotted 5.91 Cr shares to anchor investors at ₹32 apiece, the upper end of its IPO price band.

Only two domestic mutual funds — Helios Mutual Fund and Taurus Ethical Fund — participated in the anchor round, together picking up 93.75 Lakh shares, or 15.87% of the allocation. Helios acquired 62.48 Lakh shares through two schemes, while Taurus bought 31.25 Lakh shares worth ₹10 Cr.

Negen Undiscovered Value Fund, a Category III AIF operated by Negen Investment Trust, was the largest anchor investor, picking up 1.25 Cr shares, or 21.16% of the round, for ₹39.99 Cr. Singularity Growth Opportunities Fund II invested ₹26.99 Cr, while TIMF Holdings acquired 15.63 Lakh shares.

With the anchor round completed, AceVector’s ₹420 Cr IPO will open for public subscription on September 25 and close on September 29. The company is expected to list on the stock exchanges on October 5.

The IPO values the Snapdeal and Unicommerce parent at ₹1,741.4 Cr and comprises a fresh issue of shares worth ₹287 Cr and an offer for sale (OFS) of 4.16 Cr shares.

The public issue marks AceVector’s second attempt to list after its earlier plans were shelved in 2022.

SoftBank-backed Starfish I Pte Ltd, AceVector’s largest shareholder with a 30.68% stake, has cut its proposed OFS by 34.8% to 2.76 Cr shares from 4.23 Cr shares in the company’s draft prospectus. Starfish I is part of AceVector’s promoter group.

Three Nexus-affiliated entities — Nexus India Direct Investments II, Nexus Opportunity Fund Ltd and Nexus Ventures III Ltd — will collectively sell 86.96 Lakh shares, down from 1.33 Cr shares proposed earlier. Foxconn-backed FIH Business Global will sell 17.41 Lakh shares.

Meanwhile, individual investor Priyanka Shreevar Kheruka, who had proposed to sell 19.37 Lakh shares in the draft prospectus, will not participate in the OFS. Other selling shareholders include Jason Ashok Kothari, Rupen Investment and Industries and Centaurus Trading and Investments.

AceVector plans to deploy a significant portion of the fresh capital towards Snapdeal, its value-focused ecommerce marketplace.

The company has earmarked ₹132 Cr for marketing and business promotion over till FY29. This includes ₹40 Cr in FY27, ₹55 Cr in FY28 and ₹37 Cr in FY29.

The spending will cover digital and social media campaigns, influencer-led promotions, product discovery and performance marketing, with a focus on building Snapdeal’s presence among value-conscious consumers in Tier 2 and smaller cities.

AceVector will also invest ₹50 Cr in Snapdeal’s technology infrastructure. The funds will be used for cloud computing, storage, networking, software and related technology requirements. According to the company, these investments will support customer engagement and retention through personalised recommendations, improvements to the shopping experience and A/B testing. 

AceVector expects these requirements to increase as Snapdeal’s user engagement grows and the company expands its use of AI-based capabilities.

The remaining more than ₹100 Cr of the IPO proceeds has been earmarked for acquisitions. However, AceVector has not identified any specific acquisition targets, meaning the deployment will depend on opportunities that emerge after the listing.

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