Meesho IPO Subscribed 79 Times On Final Day; GMP Indicates Big Listing Gains

Meesho Ltd.'s initial public offering was subscribed 79 times on the final day of subscription on Friday, led by demand from large institutions. The grey market premium indicates strong listing gains for investors next week.

The Meesho IPO includes a mix of fresh issues of shares worth Rs 4,250 crore and an offer for sale of 10 crore shares by existing shareholders. The price band for the issue is set at Rs 105 to Rs 111 per share.

Vidit Aatry and Sanjeev Kumar are the promoter selling shareholders offloading stakes in the OFS segment.

Kotak Mahindra Capital Company Ltd., JPMorgan India Pvt., Morgan Stanley India Co., Axis Capital Ltd. and Citigroup Global Markets India Pvt. are the book-running lead managers for the issue.

The allotment of shares to IPO investors will be done tentatively on Dec. 8, and it will be credited to the demat account will be done on Dec. 9. Meesho will list on the BSE and NSE on Dec. 10.

The Meesho IPO was subscribed 79 times as of 7:00 p.m. on Friday.

• Qualified institutional buyers (QIB): 120 times

• Non-Institutional investors (NII): 36 times

• Retail investors: 19 times

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 use Rs 1,020 crore for expenditure towards marketing and brand initiatives in its subsidiary Meesho Technologies.

According to InvestorGain, the latest GMP of Meesho stood at Rs 48. It indicates a listing price of Rs 159 apiece at a premium of 43% on the upper limit of the price band.

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