Online marketplace Snapdeal has filed a draft red herring prospectus with the Securities Exchange Board of India to raise Rs 1,250 crore through an initial public issue.

Softbank, along with seven stakeholders such as Foxconn, Sequoia Capital and Ontario Teacher’s Pension Plan Board, will participate in the OFS for partial exits. Collectively, this amounts to around 8 percent of the company’s pre-offer equity share capital.

The OFS kitty comprises 24 million shares by Starfish I Pte Ltd, 2.97 million by Wonderful Stars Pte Ltd, 4.12 lakh by Sequoia Capital India III Ltd, 7.48 million by Kenneth Stuart Glass, 6.5 million by Myriad Opportunities Master Fund Ltd, 1.36 million by Ontario Teachers Pension Plan Board, 1.28 million shares by Laurent Amouyal and 5.04 lakh shares by Milestone Trusteeship Services Pvt Ltd.

Snapdeal has 71 shareholders. While Softbank has 35.41 percent of the pie, founders Kunal Bahl and Rohit Bansal together own 20.28 percent in the company. None of the two founders is diluting any stake in this IPO.

The proceeds of the public issue will be used towards growth initiatives, expanding logistics capabilities and enhancing the company’s technology infrastructure.

Axis Capital Ltd, BofA Securities India Ltd, CLSA India Pvt Ltd and JM Financial Ltd are the book running lead managers to the issue.

A look at the draft papers filed with the market regulator shares the risk assessment done by the company. Let’s take a look at the key risk factors before investing in the public issue.