The Rs 420-crore AceVector IPO reached a 64% subscription level by the second day, supported by strong retail participation. The company is using the funds to fuel marketing for its Snapdeal e-commerce platform.
The public issue of AceVector, the parent firm of the Snapdeal marketplace, witnessed steady demand on its second day of bidding. Data from the National Stock Exchange shows that the IPO reached 64% subscription by the afternoon session. Investors placed bids for 47.87 million shares, against an available offer size of 74.23 million.
Retail investors have shown the highest interest so far, fully subscribing to their reserved portion at 1.07 times. In contrast, non-institutional investors—typically high-net-worth individuals and corporate bodies—have subscribed to 75% of their allotted quota. The final success of the issue will depend heavily on the response from Qualified Institutional Buyers (QIBs), who traditionally place their bulk orders on the final day.
Before the public issue opened, the company secured Rs 189 crore from 14 anchor investors. The largest allocation went to the Negen Undiscovered Value Fund, which picked up shares worth Rs 40 crore. Other notable institutional participants include Singularity AMC and the Turnaround Opportunities Fund, managed by 360 ONE Asset Management, which invested Rs 27 crore and Rs 20 crore, respectively.
AceVector is seeking to raise a total of Rs 420 crore through this offer. The plan includes a fresh issue of shares worth Rs 287 crore and an offer-for-sale from existing shareholders, such as Starfish. The proceeds from the fresh issue are largely earmarked for marketing and promotional activities. This expenditure is aimed at strengthening the market position of the Snapdeal brand, which currently operates in the value-commerce segment, targeting budget-conscious consumers.
Investors should consider the competitive environment in which AceVector operates. The Indian e-commerce sector is dominated by large, well-capitalized players like Amazon India and Flipkart. Additionally, the recent rise of quick-commerce platforms has changed consumer buying habits, creating pressure on traditional online marketplaces to maintain user retention. The company’s long-term outlook will likely depend on its ability to drive growth through its marketing spend while managing the costs associated with customer acquisition.
As of the second day, unofficial grey market reports indicate a small premium of roughly 3.12% over the upper price band of Rs 32, valuing the stock at an implied price of Rs 33. While these figures provide a glimpse of market sentiment, they can be volatile and do not guarantee future listing performance. The public issue will conclude shortly, and stakeholders will be watching the final subscription numbers for a clearer picture of institutional demand.