Snapdeal scraps $152Mn IPO plans
Snapdeal, the Indian ecommerce market which noticed a resurgence over the previous few years after being outed by Flipkart and Amazon in early years, has determined to shelve its deliberate $152 Million IPO. The corporate confirmed the identical to Reuters. This comes at a time when most Indian tech startup shares are feeling the financial meltdown, way more than others.
Present slowdown in tech shares globally, has severely impacted listed Indian tech shares as effectively. Paytm just lately touched its lowest share worth, having seen practically 75% of its $13Bn valuation being wiped off. The case has been related with the likes of Zomato, PolicyBazaar amongst others, regardless that their declines have been extra refined.
For Snapdeal, it filed its preliminary public providing (IPO) regulatory papers at simply the appropriate time — again in December 2021 — when cash was flowing like something into Indian startups. However Snapdeal is now amongst many others, who’re delaying IPOs amid a inventory market rout that has raised considerations over frothy tech valuations.
Snapdeal filed a request with Indian inventory market regulator SEBI this week, for withdrawing its IPO prospectus.
“There is no such thing as a urge for food for tech shares proper now,” mentioned a supply to Reuters, who added that SEBI has been instructed concerning the prevailing market situations and sure different strategic selections that contributed to the change in IPO plans.
Already listed tech corporations, similar to Paytm, Zomato, PolicyBazaar amongst others, have already seen main shareholders promoting their portion of shares in bulk. Traders virtually instantly loaded off their portion, as quickly because the post-IPO lockin interval ended. Alibaba offered off $200Mn value of Zomato inventory, absorbing important loss, whereas Softbank, which has made a number of high-profile loss-making bets in India, offered bulk of its PolicyBazaar holdings.