Meesho IPO: Prosus-Backed E-Commerce Platform To Seek Rs 4,250 Crore Via Fresh Issue

Prosus-backed e-commerce platform Meesho has gotten approval from its shareholders to raise up to Rs 4,250 crore through a primary share issuance in the capital market.

The Bengaluru-based company, whose backers include SoftBank, Prosus, Elevation Capital and Peak XV, will also be offering existing investors a chance to sell stake through an offer for sale, according to regulatory filings made with the Ministry of Corporate Affairs.  

The use of proceeds from the fresh issue will be disclosed in the offer documents, the filing said.

"The offer structure will be finalised at the absolute discretion of the Board. In addition, the company may undertake a private placement of certain equity shares to selected investors," the filing dated June 26 read.

"With respect to the offer, the company will be required to file a pre-filed draft red herring prospectus," Meesho added.

Meesho's confidential DRHP filing will make it an entrant in a growing group of companies that have gone through the pre-filed confidential route. The DRHP is released only when the company decides to go live with its IPO. A confidential filing allows a company to protect what it believes to be sensitive data from its competitors.

Last month, discount broker Groww and logistics firm Shiprocket also filed confidential DRHPs. Edtech unicorn PhysicsWallah also filed its DRHP confidentially, following the likes of EQT-backed Indira IVF, Swiggy Ltd., Credila Financial Services Ltd. and Vishal Mega Mart Ltd. NDTV Profit had also reported that Tata Capital's confidential filing was likely approved by the market regulator earlier this month.

Meesho recently completed the process of shifting its domicile to India as part of its plan for a public listing in the country. Its IPO comes at a time when industry rival Flipkart is also in the process of shifting its domicile from Singapore to India ahead of its planned IPO.

Meesho shareholders have also given their nod to designate Vidit Aatrey, co-founder, as the chairman, managing director and chief executive of the firm.