Meesho Limited Announces Initial Public Offering
IPO to comprise fresh issue and offer for sale, with equity shares proposed to be listed on BSE and NSE
Meesho Limited, one of India’s fastest-growing e-commerce platforms, has announced the launch of its Initial Public Offering (IPO). The offering marks a significant milestone in the company’s journey, reflecting its ambition to strengthen its financial base and expand its reach in India’s competitive digital marketplace.
Structure of the Offer
The IPO will consist of two components:
- Fresh Issue: Equity shares aggregating up to ₹42,500 million.
- Offer for Sale (OFS): Up to 105,513,839 equity shares offered by existing shareholders.
The selling shareholders include the company’s promoters Vidit Aatrey and Sanjeev Kumar, along with prominent institutional investors such as Elevation Capital V Limited, Peak XV Partners Investments V, Venture Highway Series 1, Golden Summit Limited, Y Combinator Continuity Holdings I LLC, Sarin Family India LLC, Crimsn Holdings LLC, Titan Patriot Fund Ltd, Gemini Investments L.P., and individual shareholders Man Hay Tam and Rajul Garg.
This dual structure ensures that the company raises fresh capital while also providing liquidity to existing investors.
Price Band and Bidding Details
The price band for the IPO has been fixed between ₹105 and ₹111 per equity share of face value ₹1 each. Investors can bid for a minimum of 135 equity shares and in multiples of 135 thereafter.
The offering will be conducted through the Book Building Process in accordance with SEBI’s ICDR Regulations. Allocation will be made as follows:
- Qualified Institutional Buyers (QIBs): Not less than 75% of the offer.
- Non-Institutional Investors (NIIs): Not more than 15% of the offer.
- Retail Individual Investors (RIIs): Not more than 10% of the offer.
Within the QIB portion, up to 60% may be allocated to Anchor Investors on a discretionary basis, with one-third reserved for domestic mutual funds.
Listing Plans
The equity shares are proposed to be listed on both BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). NSE will serve as the designated stock exchange for the offer.
Lead Managers and Registrar
The IPO is being managed by a consortium of leading investment banks:
- Kotak Mahindra Capital Company Limited
- J.P. Morgan India Private Limited
- Morgan Stanley India Company Private Limited
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
The registrar to the offer is KFin Technologies Limited.
Regulatory Framework
The offer is being made in accordance with Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, and Regulation 31 of the SEBI ICDR Regulations, 2018. The Book Building Process will be followed as per Regulation 6(2) of the SEBI ICDR Regulations.
This ensures compliance with India’s capital market regulations and provides transparency in the allocation process.
Strategic Significance
Meesho’s IPO comes at a time when India’s e-commerce sector is witnessing rapid growth, driven by increasing internet penetration, digital payments, and consumer demand for affordable products. The fresh issue of shares will provide the company with capital to strengthen its operations, invest in technology, and expand its seller and customer base.
The offer for sale also allows early investors and promoters to partially monetize their holdings, reflecting confidence in the company’s long-term prospects.
Investor Considerations
Potential investors should note that equity investments involve a high degree of risk. The Red Herring Prospectus (RHP) filed with the Registrar of Companies, Karnataka at Bengaluru, outlines detailed risk factors beginning on page 89. Investors are advised to review the RHP carefully before making any investment decisions.
The RHP is available on the company’s official website, as well as on SEBI, BSE, NSE, and the websites of the Book Running Lead Managers.
Disclaimer
This announcement is prepared for publication in India only and is not intended for distribution outside the country. The equity shares have not been registered under the U.S. Securities Act of 1933 or any other applicable law of the United States. They may not be offered or sold within the United States or to U.S. persons except under specific exemptions.
Conclusion
Meesho Limited’s IPO represents a landmark moment in its corporate journey. By combining a fresh issue with an offer for sale, the company aims to raise capital for growth while providing liquidity to existing shareholders. With its proposed listing on BSE and NSE, Meesho is set to enter India’s capital markets, offering investors an opportunity to participate in the growth of one of the country’s most dynamic e-commerce platforms.
The IPO underscores Meesho’s commitment to transparency, compliance, and long-term value creation, positioning it as a significant player in India’s digital economy.
