Unveiling the Essentials – Jasper Infotech Pvt Ltd IPO Breakdown

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  • 30 Jan 2024
Unveiling the Essentials – Jasper Infotech Pvt Ltd IPO Breakdown

Key Highlights:

  • Jasper Infotech Pvt Ltd, aka Snapdeal, is one of India’s leading e-commerce platforms
  • Its IPO consists of a fresh issue and an offer for sale consisting of 30,769,600 equity shares
  • The company plans to use the funds for funding organic growth initiatives and general corporate purposes

Among the several companies whose IPO has generated a considerable buzz among investors is that of Jasper Infotech Pvt Ltd. The company, known as Snapadeal, is looking to ride investors’ confidence and raise funds to fulfil various objectives. Here are the essential details of this IPO.

Founded in 2007, Jasper Infotech Pvt Ltd operates in the e-commerce space and hosts a range of merchandise across different lifestyle categories. In its DRHP filed with SEBI, the company claims to be one of the top four online lifestyle shopping destinations in the country as of 31st August 2021. Kunal Bahl and Rohit Kumar Bansal are its whole-time directors.

According to the DRHP, the company's IPO consists of a fresh issue of equity shares aggregating up to ₹1250 crore. Its offer for sale consists of up to 30,769,600 equity shares. The bidding dates, minimum investment, lot size and price range are not yet announced.

The company plans to utilise the proceeds received from the fresh issue to:

Fund its organic growth initiatives to the tune of ₹9,000 million Fulfil general corporate purposes

The company boasts of the following strengths:

  • One of India’s largest online retail platforms focused on value-based offerings
  • Availability of a range of high-quality merchandise at budget-friendly prices sourced from a network of sellers who are committed to excellence
  • Integration of AI and ML offering shoppers a personalised buying journey
  • Utilisation of cutting-edge technology and asset-light strategies to enhance operational control and elevate user satisfaction
  • Readily available multi-lingual customer assistance targeted towards new internet shoppers
  • Tailor-made proprietary technology stack designed for the needs of value-focused e-commerce
  • A proven track record of solid corporate governance backed by marquee investors

The associated risks are as follows:

  • History of losses in the past which could continue even in the future
  • Business growth is dependent on the growth of the e-commerce industry and its ability to respond to changing user behaviours
  • Liability threat for illegal, unauthorised and counterfeit products sold on its platform
  • Dependence on Apple Store and Google Play Store for app promotion

In conclusion

The Indian e-commerce market is on a growth trajectory and is expected to reach new heights in the coming days, thanks to the digital revolution. In such a scenario, Snapdeal can benefit and help in wealth creation for its investors. However, one must wait and watch how the IPO shapes up once the final dates are announced.

FAQs

As per the company’s DRHP, the issue size of the IPO consists of a fresh issue comprising ₹ 1250 crore along with an offer size of 30,769,600 equity shares.

Snapdeal is one of India’s leading e-commerce platforms with cutting-edge technology and a multilingual interface.

The company is profitable at the unit economics level, cutting FY 23 losses by over 90%.

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