Salebhai Internet Pvt. Ltd, which run online marketplace Salebhai.com, is preparing for its Initial Public Offering (IPO) and have filed a draft prospectus (DRHP) on BSE’s SME platform. Salebhai is looking to raise close to Rs 23.8 crore through a fixed-price offer at Rs 105 per share.
It will be issuing 2259,600 equity shares or 26.58% of the company’s equity. The initial public offering (IPO) will result in a stake dilution of 26.58%. The date of opening and closing of IPO is currently unknown.
Incorporated in 2015, the Ahmedabad-based e-commerce company was started by Vishwavijay Singh, and Purba Kalita, to sell Indian specialty and regional items such as sweets, snacks, biscuits, chocolates, pickles, spices, puja offerings, festival needs, handicrafts, carpets, paintings etc. It said in its draft that Salebhai focuses on requirements of over 17 diaspora communities living in big Indian cities as well as those who live abroad. It lists close to 8500 products from 100 cities and 300 vendors.
Objective of IPO
In its Red Herring Prospectus (DRHP), Salebhai said that the net proceeds from the issue will be utilized to overall grow the business, upgradation of technology on a continuous basis, IT support, maintenance of e-commerce website and customer acquisition, marketing, and branding.
1. Operating Expenditure – Rs 5.43 crore
2. Customer Acquisition – Rs 7.5 crore
3. IT Development – Rs 5 crore
4. General Corporate Purpose – Rs 5.09 crore
5. Brand Building & Promotion – Rs 20 lakh
6. Issue Expense Rs 50 lakh
It reported a loss of Rs 1.6 crore for the 10 months ending 31st January 2018 (FY 2018) on revenue of Rs 89.14 lakh.
FY 2017, it reported a loss of Rs 2.88 crore on revenue of Rs 45.42 lakh.
FY 2016, it posted a loss of Rs 1.1 crore on revenue of Rs 1.25 lakh.