Shares in the offering were being sold by the company and its parent Shanda Investment Holdings Ltd, a unit of internet media firm Shanda Interactive Entertainment Ltd.
Cloudary has six original literature websites and had about 66.9 million monthly visitors in the first quarter of 2012, a filing showed.
The company, which had filed for a U.S. listing in May 2011, had listed BofA Merrill Lynch and Goldman Sachs as underwriters to the offering.
(Reporting By Neha Dimri in Bangalore; Editing by Sreejiraj Eluvangal)