AceVector IPO Raises ₹420 Cr, SoftBank's Starfish Exits
AceVector's IPO closed at ₹32 per share, raising ₹420 crore. SoftBank-backed Starfish was the largest seller, exiting with ₹88.3 crore.
AceVector's IPO closed at ₹32 per share, raising a total of ₹420 crore for the ecommerce enabler. The offer, which closed on Tuesday, September 29, comprised a fresh issue of ₹287 crore and an offer for sale (OFS) of up to 4.16 crore shares. The IPO was subscribed 4.93 times, valuing the company at approximately ₹1,741 crore.
Starfish's exit and returns
SoftBank-backed Starfish I Pte Ltd was the largest seller in the OFS, receiving ₹88.3 crore from the sale of 2.76 crore shares. This transaction represented a 0.08X return multiple on the shares sold. Starfish's sale accounted for roughly two-thirds of the total OFS proceeds. Post-IPO, the entity will retain 11.3 crore shares, valued at about ₹361.8 crore at the issue price.
Other investor exits
The IPO revealed starkly divergent returns for other early backers. While Starfish secured the largest absolute proceeds, individual investor Kenneth Stuart Glass achieved the highest multiple. He sold 13.2 lakh shares for ₹4.2 crore. "The transaction represented a 5.42X return multiple, making it the highest return among selling investors," said Glass. He retains 30.7 lakh shares worth about ₹9.8 crore.
Nexus Venture Partners exited via multiple investment vehicles, with three entities collectively selling 86.9 lakh shares. Their returns varied significantly.
| Investor | Shares Sold | Proceeds (₹ Cr) | Return Multiple |
|---|---|---|---|
| Nexus India Direct Investments II | 73.9 Lakh | 23.6 | 1.03X |
| Nexus Opportunity Fund Ltd | 8.4 Lakh | 2.6 | 0.14X |
| Nexus Ventures III | 4.6 Lakh | 1.4 | 0.07X |
Nexus India Direct Investments II retains 3 crore shares worth about ₹96.7 crore. Other sellers included Laurent Bernard Amouyal, who booked a 4.38X return, and Jason Ashok Kothari with a 0.78X multiple. FIH Business Global sold 17.4 lakh shares for ₹5.6 crore, and Rupen Investment and Industries sold 2.7 lakh shares for about ₹86 lakh.
Use of proceeds and company background
The fresh capital of ₹287 crore is earmarked largely for Snapdeal, including ₹132 crore for marketing and business promotion and ₹50 crore for technology infrastructure. The remaining proceeds are intended for acquisitions and general corporate purposes. Founded in 2010 by Kunal Bahl and Rohit Bansal as Snapdeal, the company pivoted to a value-focused ecommerce model after a proposed merger with Flipkart collapsed in 2017. It rebranded to AceVector in 2022. Besides Snapdeal, its offerings include listed ecommerce SaaS company Unicommerce and consumer brands business Stellaro Brands.
AceVector is set to list on BSE and NSE on October 5 at the IPO price of ₹32 per share.
