Meesho IPO GMP: Here's What Grey Market Signals Ahead Of Next Week Launch

E-commerce platform Meesho Ltd. is set to launch its much-awaited initial public offering (IPO) on Dec. 3. The Bengaluru-based online marketplace competes with companies like Amazon and Flipkart to sell a range of products.

Within a decade of its launch, Meesho has turned into a household name in India, giving consumers access to a wide range of affordable products while offering sellers a low-cost platform to grow their businesses.

Ahead of its IPO launch, investors are closely watching the grey market premium (GMP) trends as they anticipate heavy demand for the issue. Here are key details about Meesho IPO’s offer size, price band and other details.

According to the Investorgain, Meesho's latest IPO GMP was Rs 35.5 as of 10:00 a.m. on Nov. 28. With a price band cap of Rs 111, the estimated listing price for Meesho shares is expected to be Rs 146.5, based on the current GMP trends. This implies  an expected gain of 31.98% per share.

Note: GMP does not represent official data and is based on speculation.

Meesho IPO will comprise a fresh issue of shares worth Rs 4,250 crore, and an offer for sale of 175.7 million shares by existing investors.

The price band for the IPO has been fixed between Rs 105 and Rs 111 per share. The Meesho IPO lot size is 135 equity shares and in multiples of 135 equity shares thereafter.

Qualified Institutional Buyers (QIBs) will be offered not less than 75% of the total shares in the issue, making them the largest investor segment. Non-Institutional Investors (NIIs) are allocated up to 15% of the shares, while retail investors will receive not more than 10% of the total offering.

Meesho’s IPO will open for subscription on Wednesday, Dec. 3 and close on Friday, Dec. 5. The tentative allotment of shares is expected to be finalised on Monday, Dec. 8. Following allotment, the IPO is scheduled to list on the stock exchanges on Wednesday, Dec.10. 

Kotak Mahindra Capital Company Ltd. is acting as the book-running lead manager, while Kfin Technologies Ltd. will serve as the registrar of the issue.

Founded in 2015, Meesho Limited is a multi-sided technology platform in India that connects consumers, sellers, logistics partners and content creators.

For the period ended March 31, Meesho reported a total income of Rs 9,900.90 crore, up from Rs 7,859.24 crore the previous year. Despite higher revenue, the company posted a substantial loss after tax of Rs 3,941.71 crore, compared to a loss of Rs 327.64 crore in the prior year. Ebitda improved slightly to a negative Rs 219.59 crore from negative Rs 230.15 crore a year earlier. 

Meesho’s IPO proceeds are proposed to be utilised for cloud infrastructure for its subsidiary, MTPL, salaries of existing and new hires in the technology teams supporting MTPL’s technology development. A portion of the proceeds will also be used for marketing and brand initiatives as well as general corporate purposes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.