AceVector’s Weaker Stock Market Debut Impacting Snapdeal’s Growth
AceVector, which is the parent firm of the e-commerce platform Snapdeal, encountered a challenging debut on the stock exchanges on Monday, October 5. The shares listed at a discount of approximately 12% relative to the IPO price. On the NSE, the shares commenced trading at Rs 28.32, in comparison to the issue price of Rs 32, indicating an 11.5% discount. On the BSE, the stock opened at Rs 28.30, reflecting a decline of 11.56% from the IPO price.
IPO Details and Investor Interest
The underwhelming debut occurred despite AceVector’s impressive IPO of Rs 420 crore, which attracted significant interest from investors. The issue was subscribed approximately 5 times during the three-day bidding period, with the retail segment subscribed 4.83 times and the non-institutional investor category receiving 8.53 times subscription.
Structure of the IPO
The IPO comprised a fresh issue valued at Rs 287 crore and an offer-for-sale (OFS) of Rs 133 crore. The company had established a price band between Rs 30 and Rs 32 per share. Notably, existing investors such as SoftBank and Nexus Venture Partners partially divested their stakes through the OFS, while co-founders Kunal Bahl and Rohit Bansal opted not to sell any shares in the IPO.
Future Plans for IPO Proceeds
AceVector intends to allocate a portion of the proceeds from the IPO for marketing and promotional initiatives within its marketplace business. An amount of approximately Rs 132 crore has been designated for this objective, while an additional Rs 50 crore is earmarked for enhancing technology infrastructure. The remainder of the funds will be utilised for acquisitions and general corporate activities.
AceVector’s Business Operations
AceVector manages Snapdeal along with e-commerce facilitation platforms such as Uniware, Shipway, and Convertway. Additionally, it oversees consumer brands under Stellaro Brands.
Financial Performance Overview
The financial results for AceVector showed notable improvement in FY26. The total income experienced a year-on-year increase of 32%, climbing to Rs 538 crore from Rs 407 crore in FY25. Concurrently, the net loss significantly decreased to Rs 45 crore from Rs 126 crore in the previous year.