The anchor book allotment for the highly anticipated Initial Public Offering (IPO) of e-commerce platform Meesho ignited controversy after higher anchor allocation to SBI Mutual Fund.
Meesho’s IPO advisors prioritised investors who were keen on a long-term partnership with the e-commerce firm, people in the know told NDTV Profit. With this in mind SBI MF secure approximately 25% of the total anchor book portion which was viewed as disproportionately large by other Qualified Institutional Buyers (QIBs).
Meesho did not provide an official comment.
Meesho, on Tuesday said it has garnered a little over Rs 2,439 crore from anchor investors, including SBI Mutual Fund, Fidelity Funds, and BlackRock, ahead of its IPO opening for subscription.
The anchor book witnessed demand of over Rs 80,000 crore, translating into nearly 30 times oversubscription.
The anchor book saw participation from 60 investors, including major domestic institutional investors and leading global names such as the Government of Singapore, the Monetary Authority of Singapore, Tiger Global, Goldman Sachs, and Morgan Stanley, according to a circular uploaded on the BSE website.
On the domestic front, SBI Mutual Fund (MF), UTI MF, Tata MF, Motilal Oswal MF, Axis MF, Motilal Oswal MF, Bandhan MF, and HSBC MF, among others, have been allotted shares.
As per the circular, the company has allocated 21.97 crore equity shares at Rs 111 apiece, raising a total of Rs 2,439.5 crore. The IPO will comprise a fresh issue of shares worth Rs 4,250 crore, along with an offer for sale (OFS) of 10.55 crore shares valued at Rs 1,171 crore at the upper band, taking the total issue size to Rs 5,421 crore.
The offer for sale includes the sale of equity shares by some of Meesho's early investors, including Elevation, Peak XV, Venture Highway and Y Combinator, among others.
Meesho plans to utilise proceeds for investment in cloud infrastructure, marketing and brand initiatives, as well as funding inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.
The company will make its debut on the stock market on December 10.
Overall, 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
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