Meesho's ₹5,421cr IPO: What GMP signals ahead of launch
What's the story
SoftBank-backed e-commerce platform Meesho has announced the price band for its Initial Public Offering (IPO) at ₹105-111 per equity share of face value ₹1 each. The IPO will open for subscription on December 3 and close on December 5. Investors are eyeing Meesho's grey market premium (GMP), which stood at ₹35.5 earlier today. At the upper limit of price band, the GMP suggests a potential listing price of ₹146.5, implying a gain of 32% per share.
IPO details
Meesho's IPO: A closer look at the structure
The IPO comprises a fresh issue of equity shares worth up to ₹4,250 crore and an offer for sale (OFS) of up to 10.55 crore shares. Major shareholders such as Elevation Capital, Vidit Aatrey, Sanjeev Kumar, Peak XV Partners and Venture Highway will dilute part of their holdings in this OFS. The proceeds from this offer won't be available to the company. Instead, the capital raised will help fund organic growth initiatives, technological infrastructure improvements, and strengthening marketplace capabilities.
Financials
Meesho's financial performance and market position
Despite reporting a loss for FY25, Meesho has seen strong growth in its user base and order volume. The company's annual transacting users rose to 234.2 million in the six months ending September 30, from 175.1 million last year. On the seller side, annual transacting sellers grew to 706,471 during this period up from 440,824 a year ago.
Management team
Meesho's IPO: Lead managers and allotment process
The IPO is being managed by top investment banks Kotak Mahindra Capital, J.P. Morgan, Morgan Stanley, Axis Capital and Citigroup. KFin Technologies Limited will serve as the registrar to the offer. The basis of allotment will be finalized on or around December 8 with refunds and share credit to demat accounts scheduled for December 9. Trading of shares is expected to commence from December 10 subject to regulatory approvals.