Meesho Raises INR 2,439 Cr from Anchor Investors With Nearly 30 Times Oversubscription Out of the total allocation of 219,778,524 Equity shares to the anchor investors, 45.91% of the total allocation to anchor investors were allocated to 14 domestic mutual funds and 5 domestic insurance companies.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
SoftBank backed e-commerce platform Meesho has secured INR 2,439 crore through its anchor book ahead of its initial public offering. The company made the announcement on Tuesday after confirming participation from more than 60 global and domestic institutional investors. The allocation was made at INR 111 per equity share, as stated in a circular uploaded on the BSE website.
The anchor book attracted demand of more than INR 80,000 crore, translating into close to 30 times oversubscription.
The list of major global participants includes GIC, Fidelity Funds and BlackRock. Technology focused investment firms such as Dragoneer Investment Group, Morgan Stanley Investment Management through its Counterpoint Global unit, Goldman Sachs Asset Management and WCM Investment Management also took part in the anchor round.
On the domestic front, several leading Indian mutual funds and insurance companies received allocations. SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Mutual Fund, UTI Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund and HSBC Mutual Fund were among the key domestic investors. According to the circular, 45.91 percent of the anchor allocation was made to 14 domestic mutual funds and 5 domestic insurance firms.
Meesho will open its public issue of INR 5,421 crore for subscription on December 3. The issue will remain open until December 5.
The company has set a price band of INR 105 to INR 111 per share. At the upper end of the band, Meesho's valuation stands at INR 50,096 crore (USD 5.6 billion). The IPO includes a fresh issue of INR 4,250 crore along with an offer for sale of 10.55 crore shares valued at INR 1,171 crore. Early investors including Elevation, Peak XV, Venture Highway and Y Combinator will sell part of their holdings through the offer for sale component.
The company plans to utilise the IPO proceeds for investment in cloud infrastructure, expansion of marketing and brand initiatives and funding inorganic growth through acquisitions. The remaining funds will go toward general corporate purposes. Meesho is expected to list on the stock exchanges on December 10.
