SoftBank-Backed OfBusiness Is Said to Explore Reviving India IPO

OFB Tech Pvt, the proprietor of the technology supply chain and financing platform known as OfBusiness, is reportedly mulling a potential revival of its initial public offering (IPO). The company, which is backed by SoftBank Group Corp., is seeking to raise up to $800 million through the offering, according to sources close to the situation.

SoftBank collaborates with financial institutions such as Axis Capital Ltd., Morgan Stanley, JPMorgan Chase & Co., and Citigroup Inc. to facilitate the potential listing process, sources revealed, requesting anonymity due to the sensitive nature of the information. The company aims to submit its draft prospectus for review by November, per the sources.

While the earlier attempt to list OfBusiness was stalled due to unfavorable market conditions, the revived offering is anticipated to feature a fresh issuance of up to $200 million, with the balance being sold by existing shareholders, as reported by the sources. Notably, SoftBank is not the only investor in OfBusiness; the company also boasts participation from other prominent venture capital firms like Tiger Global Management, Norwest Venture Partners, Matrix Partners, and Falcon Edge Capital, as indicated on its official website.

The company's management team is currently deliberating on the specifics of the share sale, including the timing, size, and structure, which could potentially undergo changes, the sources added. Despite the ongoing discussions, representatives from OfBusiness and the involved banks have not yet provided any comments on the matter.

India's market for new share sales has shown signs of recovery after a sluggish first half of the year. Recent significant IPOs in the country include SBI Funds Management Ltd. and Manipal Health Enterprises Ltd. So far this year, companies have collectively raised approximately $6.8 billion through IPOs, marking a decline from the record $22.4 billion raised throughout all of the previous year, according to data compiled by Bloomberg.

Established in 2015, OfBusiness operates a business-to-business commerce platform that integrates raw material procurement with embedded financing solutions for small and medium-sized enterprises. The company caters to various product categories, including metals, chemicals, agricultural commodities, and apparel, while also providing working capital and credit solutions to its clients.