SoftBank-backed AceVector's Rs 420-cr IPO to open on Sep 25; sets price band at Rs 30-32/share

AceVector, the parent company of B2B industrial goods platform Moglix and fintech lender Credlix, is set to launch its initial public offering on September 25. The company aims to raise Rs 420 crore by listing on the BSE and NSE, setting a price band of Rs 30-32 per share for its market debut.

This public offering provides a key test of investor appetite for technology companies backed by major global funds like SoftBank. The IPO will remain open for subscription until September 27.

IPO Structure and Shareholder Exit

The Rs 420 crore offering is composed of a Rs 150 crore fresh issue of shares and a Rs 270 crore offer-for-sale (OFS) by existing shareholders. The OFS component allows early backers to partially liquidate their investment. Key sellers include promoters Elevation Capital and SCI Investments V, alongside major investor SoftBank and Indiamart Intermesh.

Use of Proceeds for Growth

AceVector plans to allocate the capital from the fresh issue towards strategic growth initiatives. The company has earmarked Rs 50 crore for enhancing brand visibility and awareness, a crucial step for scaling its platforms. Another Rs 40 crore is designated for inorganic growth through potential acquisitions, with the remainder intended for general corporate purposes. This strategy indicates a focus on both organic market penetration and strategic consolidation.

Financial Health and Investor Allocation

For the nine months ending December 2023, AceVector reported revenue from operations of Rs 1,114 crore and a net loss of Rs 137 crore. The ongoing losses highlight the inherent risk associated with growth-stage technology firms. The IPO allocation reserves up to 50% for Qualified Institutional Buyers (QIBs), a minimum of 35% for retail investors, and at least 15% for non-institutional investors. ICICI Securities and IIFL Securities are the book running lead managers for the issue.