SoftBank sells 1.65% stake in Meesho for ₹1,885cr
What's the story
Japanese investment giant SoftBank has sold its 1.65% stake in Indian e-commerce platform Meesho for ₹1,885.17 crore. The transaction was carried out by SVF II Meerkat (DE) LLC, a SoftBank affiliate, which sold 7.64 crore shares at an average price of ₹246.75 each on the National Stock Exchange (NSE). With this sale, the affiliate's stake in Meesho has reduced from 6.84% to 5.19%.
Investor interest
SocGen was the largest buyer in the transaction
The stake sale attracted a number of domestic and foreign institutional investors, with Societe Generale (SocGen) being the largest buyer.
The Paris-based financial services firm bought over 1.47 crore shares or a 0.32% stake for ₹364.65 crore.
Other domestic institutional buyers included mutual funds managed by Motilal Oswal, HDFC, Edelweiss and Aditya Birla Sun Life as well as Bajaj Life Insurance.
Global participation
Foreign investors also participated in the stake sale
The stake sale saw participation from foreign investors such as Morgan Stanley, Fidelity Investments, BNP Paribas and Goldman Sachs.
Other participants included Ghisallo Capital Management and Texas Municipal Retirement System.
The Singaporean government, the Monetary Authority of Singapore and Norway's sovereign wealth fund Government Pension Fund Global also participated in this transaction.
Portfolio adjustment
SoftBank's ongoing divestment in Indian portfolio companies
The latest transaction is part of SoftBank's ongoing divestment in its Indian portfolio companies, especially those in the e-commerce and consumer technology sectors.
Earlier this month, the Japanese investor had sold a 1.56% stake in eyewear retailer Lenskart Solutions for ₹1,896 crore.
In September, it had offloaded another 1.7% stake in Meesho for ₹1,650 crore.