Anchor investors bid ₹80,000cr for Meesho IPO
What's the story
Meesho, a leading e-commerce platform, has witnessed an unprecedented response from global and domestic investors for its upcoming IPO. The company's anchor book has been oversubscribed by over 32 times, drawing commitments worth nearly ₹80,000 crore. SBI Mutual Fund, India's largest mutual fund house, along with Tiger Global and BlackRock were the top bidders for the ₹2,439 crore ($292 million) anchor tranche.
Investor participation
Global investors show interest in Meesho's IPO
Along with SBI Mutual Fund, Tiger Global, and BlackRock, several other global investors have shown interest in Meesho's IPO. These include GIC, ADIA, Fidelity International, Fidelity Management & Research, Baillie Gifford, Wellington and Goldman Sachs Asset Management. Dragoneer Investment Group, Morgan Stanley Counterpoint Global, and Kora Capital are also in the fray.
Local participation
Domestic mutual funds express interest in Meesho's IPO
On the domestic front, Birla Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund and Franklin Templeton Mutual Fund have shown interest in participating in Meesho's anchor book. The company will open its much-awaited IPO on Wednesday, December 3 and close it on Friday, December 5. The price band has been set at ₹105-111 per share valuing the business at nearly ₹50,096 crore at upper end.
IPO breakdown
Meesho's IPO structure and allocation details
Meesho's IPO will raise ₹5,421.05 crore at the top of the price range. This includes a fresh issue of ₹4,250 crore and an offer for sale (OFS) of up to 10.55 crore shares by existing shareholders. The company has cut down the OFS component by nearly 40% from its earlier plan of 17.57 crore shares to around 10.55 crore shares worth some ₹1,172 crore at upper end of price band.