E-commerce company Snapdeal has filed draft red herring prospectus (DRHP) with Security Exchange Board of India (SEBI) as the e-commerce firms plans to raise Rs 1,250 crore through initial public offering (IPO).
Backed by investment behemoth Softbank, Snapdeal will also be rolling out an offer-for-sale of more than three crore equity shares by the existing shareholders, according to the company's DRHP, reports Moneycontrol.
Apart from Softbank, Sequoia Capital, Foxconn and Canada’s Ontario Teachers Pension Plan Board are among other investors that will be selling shares in the company.
In total, this will make up around 8 per cent of Snapdeal’s pre-offer equity share capital.
However, founders Kunal Bahl and Rohit Bansal will not be diluting any of their 20.28 per cent stakes in the company.
Snapdeal is slated to use the proceeds from the IPO for expanding its logistical capabilities, improving the company’s technological infrastructure and also for its growth initiatives.
Moneycontrol had reported previously that Snapdeal will be opening up several partner stores across small cities to make its way into the offline domain.
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