Meesho IPO Draws Rs 2,400 Crore From BlackRock, Fidelity, Others In Anchor Round
Meesho IPO: Marque foreign entities like BlackRock, Fidelity, Government of Singapore, Abu Dhabi Investment Authority, Schroder Group, Goldman Sachs and Morgan Stanley were alloted shares.
Meesho Ltd. received strong institutional participation in its pre-IPO anchor round, raising Rs 2,440 crore on Tuesday.
Marque foreign entities like BlackRock, Fidelity, Government of Singapore, Abu Dhabi Investment Authority, Schroder Group, Goldman Sachs and Morgan Stanley were allotted shares.
Nearly 22 crore equity shares were subscribed at the IPO price of Rs 111 apiece, according to a stock exchange filing.
Out of the total allocation, nearly 43% were allocated to 14 domestic mutual funds through a total of 52 schemes.
These include SBI Mutual Fund, Aditya Birla Sun Life, Axis Mutual Fund, Mirae, UTI Mutual Fund, Tata Mutual Fund, Motilal Oswal and HSBC Mutual Fumd, among many others.
Earlier in the day, Bloomberg News reported several major investors pulled out of Meesho's anchor round when the Indian e-commerce firm allocated about a quarter of the shares in this tranche to SBI Funds Management Pvt.
Among those who withdrew were Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential Asset Management Co., Nippon India Life Asset Management Ltd. and Nomura Asset Management, the report said.
Notably, Meesho's anchor report did not feature any of these names.
Meesho will launch its IPO on Wednesday. The IPO will include 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. 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 Investmets are corporate selling shareholders that are selling stake. In addition Man Hay Tam will also be selling stake in the OFS.
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. Sudeep Pharma will list on the BSE and NSE on Dec. 10.
Meesho will use Rs 1,390 crore from the proceeds to invest for cloud infrastructure in subsidiary Meesho Technologies Pvt., 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.
Meesho IPO GMP
The latest GMP for Meesho IPO was Rs 46.5. With a price band cap of Rs 111, the estimated listing price for Meesho shares is Rs 157.5. This implies an expected gain of 42% per share.
The grey market premium for the Meesho IPO has increased by nearly 30% since the price band for the mainboard offer was announced.
Note: GMP does not represent official data and is based on speculation.
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.
