Snapdeal postpones plans to bring IPO, withdraws draft documents

New Delhi. E-commerce company Snapdeal has postponed its initial public offering (IPO) plans due to weak market conditions. The company gave this information. Snapdeal was to issue fresh equity shares worth Rs 1,250 crore under the IPO and offer for sale of over three crore shares.

After postponing the IPO, it has not yet set any new deadline for it. A Snapdeep spokesperson said that considering the current market conditions, the company has decided to withdraw the draft document (DRHP).

Company may consider IPO in future depending on market conditions and requirement of capital for growth. Snapdeal, once a strong player in the e-commerce sector, faced stiff competition from Amazon and Flipkart. More than 90 per cent of the products sold on its platform are priced below Rs 1,000 and more than 80 per cent of its consumers are in smaller towns.