Meesho IPO GMP In Focus As Subscription Enters Second Day; Check Key Details

E-commerce platform Meesho Ltd. launched its much-awaited initial public offering (IPO) on Wednesday, December 3. The Bengaluru-based online marketplace that competes with companies like Amazon and Flipkart to sell a range of products was fully booked on Day 1. According to BSE data, the IPO was subscribed 2.35 times, with QIBs subscribing 2.12 times the number of shares offered, RIIs subscribing 3.86 times, and NIIs subscribing their quota 1.80 times. Investors poured in bids for 65,41,96,635 shares against the 27,79,38,446 on offer.

After its launch, the grey market premium for the mainboard IPO has been topping the 'Business and Finance' trending charts, indicating strong interest among investors (especially private market investors) who would gauge the performance of the public issue based on market sentiments. Although one must note that the grey market is unregulated (not governed by authorities like SEBI) and speculative, it can fluctuate wildly. Therefore, investors use it as a sentiment gauge, but not as a guaranteed prediction.

The current GMP trends suggest that the IPO will likely debut at a premium of around 35-40%.

Here's all you need to know about the Meesho IPO, including the latest grey market premium, price band, offer size, important dates and more.

The latest GMP for Meesho IPO was Rs 43 on December 4. With a price band cap of Rs 111, the unlisted shares of Meesho were trading at Rs 154 in the private market. This implies an expected gain of 38.74% per share when the stock debuts next week.

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

Meesho's IPO comprises 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 is set at Rs 105 to Rs 111 per share. The Meesho IPO lot size is 135 equity shares, with multiples of 135 equity shares thereafter.

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.

Vidit Aatry and Sanjeev Kumar are the promoters selling shareholders offloading stakes in the OFS segment. Peak XV Partners, Elevation Capital V Ltd., Venture Highway Series 1, Golden Summit Ltd., Y Combinator Continuity Holding I, LLC, Sarin Family India LLC and Gemini Investments are corporate selling shareholders selling stakes. In addition Man Hay Tam will also be selling a stake in the OFS.

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

The company will use Rs 1,390 crore from the proceeds to invest for cloud infrastructure, in Meesho Technologies Pvt. Ltd its subsidiary, while Rs 480 crore will be used form payment of salaries of existing and replacement hires for the Machine Learning and AI and technology teams. The company will also allocate Rs 1,020 crore to marketing and brand initiatives in its subsidiary Meesho Technologies.

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.

GMP Disclaimer: The final listing price is determined by the official price discovery mechanism on the stock exchange on listing day, which is influenced by official subscription data, anchor investor interest, and overall market conditions, not just the GMP.