Meesho's IPO faces investor backlash over share allocation
Meesho's big IPO plans just hit a speed bump—several major institutional investors pulled out after the company gave about 25% of its anchor shares to SBI Funds Management, raising concerns over fairness.
Names like Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential Asset Management Co., Nippon India Life Asset Management Ltd., and Nomura Asset Management all withdrew their bids.
What does Meesho actually do?
Meesho is an Indian e-commerce platform that started in 2015 and quickly made a name for itself by targeting value-focused shoppers in smaller towns.
Competing with giants like Flipkart and Amazon, Meesho has grown fast and carved out a strong spot among budget-conscious buyers.
Quick facts & what's next:
IPO runs December 3-5; listing is set for December 10.
Target: ₹5,421 crore raise at up to ₹50,096 crore valuation; shares priced at ₹105-111 each.
Despite a net loss of ₹3,941.71 crore last year, Meesho has posted positive free cash flows for two years.
The company saw ₹701.6 billion in sales (GMV) last year.
Plans include investing in cloud infrastructure and AI and tech salaries.