AceVector IPO Sees 9% Subscription on Day 1, Retail Investors Lead Bids

AceVector, the parent company of Indian e-commerce platform Snapdeal, has achieved 9% subscription for its initial public offering (IPO) worth ₹420 crore (approximately $50 million USD) on the first day of bidding. Investors had bid for 6.51 million shares against the 74.2 million shares on offer, according to data from the Bombay Stock Exchange (BSE).

Retail investors led the subscription, bidding for 36% of their reserved portion, which amounted to 4.99 million shares out of the 13.7 million allocated to them. Non-institutional investors subscribed to 7% of their quota, while qualified institutional buyers (QIBs) had not yet placed any bids.

The IPO, which closes on September 29, has set a price band of ₹30-₹32 per share, valuing AceVector at up to ₹17.414 crore (approximately $209 million USD). The company intends to use approximately ₹132 crore from the fresh issue for Snapdeal's marketing and business promotion, and ₹50 crore for technology infrastructure. Shares are expected to list on the BSE and NSE on October 5.

AceVector, originally founded as Snapdeal in 2010, now operates as a diversified entity that includes the e-commerce enablement platform Unicommerce and the consumer brands business Stellaro Brands. The company reported a 29.2% increase in operating revenue to ₹510.3 crore for the last fiscal year, while its net loss narrowed by 64% to ₹45.5 crore.