- Y Combinator sold 4.85 crore Meesho shares in block deals worth Rs 970 crore
- Sales represented about 1.05% of Meesho's equity at Rs 200.01 per share
- Nippon India Mutual Fund was the largest disclosed buyer with 1 crore shares
Y Combinator has pared its stake in e-commerce platform Meesho through a series of block deals worth nearly Rs 970 crore, with several leading global and domestic institutional investors taking the other side of the transactions.
Three Y Combinator-linked entities sold a combined 4.85 crore Meesho shares on the NSE on Monday, August 24. The shares were sold at Rs 200.01 apiece, representing a total transaction value of about Rs 970 crore.
According to block deal data, the transactions amounted to around 1.05% of Meesho's equity.
Y Combinator Continuity Holdings I LLC sold 2,30,27,687 shares, while YCS16 Holdings LLC offloaded 2,06,03,720 shares. YCVC Fund I LP sold another 48,47,934 shares.
All three transactions were executed at the same price of Rs 200.01 per share. The price was around 2.47% below Meesho's NSE closing price of Rs 205.07 on Monday.
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The large secondary transaction attracted a broad group of institutional investors. Nippon India Mutual Fund emerged as the largest disclosed buyer, acquiring 1,00,00,002 Meesho shares.
HDFC Standard Life Insurance Company purchased 75,00,003 shares, while Edelweiss Mutual Fund acquired 34,70,553 shares. Franklin Templeton Mutual Fund bought 25,00,001 shares and Societe Generale purchased 23,75,002 shares.
Several international financial institutions also participated in the block deals. Morgan Stanley Asia Singapore Pte. Ltd reported two purchases involving 12,58,752 and 17,00,002 shares.
Goldman Sachs Bank Europe SE bought 14,25,002 shares, while Goldman Sachs Investments Mauritius I Ltd acquired 12,50,002 shares. Citigroup Global Markets Mauritius Pvt. Ltd purchased 15,00,002 shares.
Other buyers included Integrated Core Strategies (Asia) Pte. Ltd., Canara Robeco Mutual Fund, HSBC Mutual Fund, Kotak Securities, Kuwait Investment Authority, BNP Paribas Financial Markets, BofA Securities Europe SA, Robeco Capital Growth Funds and Viridian Asia Opportunities Master Fund.
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The Meesho transaction marks another significant stake sale by Y Combinator in India's new-age technology sector within a week.
On August 18, the Silicon Valley-based investor sold a 1.2% stake in Billionbrains Garage Ventures, the parent company of fintech platform Groww, for around Rs 1,435 crore.
The latest Meesho sale comes as institutional investors continue to participate actively in transactions involving India's listed technology companies.
Meesho shares ended Monday at Rs 205.07 on the NSE, down Rs 0.62, or 0.30%, from their previous close of Rs 205.69. The stock opened at Rs 207.24 and touched an intraday high of Rs 212.65 before falling to a low of Rs 201.50.
The block deal price of Rs 200.01 therefore came below the stock's closing price, while the transaction provided a sizeable exit for the Y Combinator-linked entities and brought a diverse set of institutional investors into the trade.
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