E-commerce platform Snapdeal issues 394 million Bonus Equity Shares

• ByTejika Bajaj     |    December 4, 2021

The IPO bound e-commerce platform Snapdeal has issued bonus equity shares to its existing shareholders ahead of filing its draft red herring prospectus (DRHP) with the market regulator SEBI. As per the regulatory filings, the Delhi based platform is allotting 394 million bonus equity shares to 61 of its shareholders.

The online platform has allotted the bonus shares in proportion to 159 new bonus equity shares of INR 1 for each equity share of INR 1 i.e. in the ratio of 159:1 share. Reports indicate that Starfish I Pte Ltd, a subsidiary of Masayoshi Son’s Softbank, which owns 8,79,253 equity shares of the company has received the highest bonus shares of 139.8 million, thus making its shareholding to 140 million.

Other notable ventures who have received the bonus equity shares include Nexu Partners, Intel Capital, Ontario Teachers’ Pension Plan, BlackRock and Sequoia Capital among others. Angel Investor Kunal Bahl and Rohit Kumar Shah has received around 1.6 million bonus equity shares.

This development comes a month after Snapdeal increased its ESOP pool by 151% to 500000 options. Startups issuing bonus shares ahead of its filing has now become the industry norm for all Indian startups.

Founded in 2010 by Kunal Bahl and Rohit Bansal, Snapdeal is an e-commerce platform that offers close to 60000 products on its app. The Delhi based app has received $1.5 billion till date from marquee investors such as SoftBank, Foxconn Technology Group, Alibaba Group and Canada’s Ontario Teachers Pension Plan. It claims to have over 500k sellers and serves customers across 6000 towns. 

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