Meesho Limited delivered a stellar stock market debut on December 10, listing at a sharp premium of around 46 percent to its issue price, following overwhelming investor interest in its ₹5,421-crore initial public offering (IPO).
The stock opened at ₹162.50 on the National Stock Exchange against the IPO price of ₹111, marking a premium of 46.40 percent. On the BSE, Meesho listed at ₹161.20, up 45.23 percent, underscoring strong market confidence in the SoftBank-backed e-commerce platform.
The bumper listing exceeded grey market expectations. Ahead of the debut, the IPO’s grey market premium was around ₹43, indicating a potential upside of nearly 39 percent.
The IPO, open between December 3 and December 5, was subscribed an impressive 79.02 times, driven primarily by institutional investors. According to NSE data, the issue received bids for 21.96 billion shares against the 277.9 million shares on offer.
Qualified institutional buyers (QIB) led the charge with a subscription of 120.18 times, followed by non-institutional investors at 38.15 times. Retail investors, too, showed robust interest, subscribing 19.04 times.
Ahead of the issue, Meesho mobilised ₹2,439 crore from anchor investors.
Priced in the range of ₹105–111 per share, the issue valued the Bengaluru-based company at about ₹50,096 crore ($5.6 billion) at the top end. The IPO comprised a fresh issue worth ₹4,250 crore and an offer for sale of 10.55 crore shares amounting to ₹1,171 crore.
The company plans to deploy the fresh capital for strengthening its technology and cloud infrastructure, expanding marketing and brand-building initiatives, pursuing acquisitions to support inorganic growth, and other general corporate purposes.
Disclaimer: This article is for informational purposes only. Investors are advised to seek guidance from certified financial advisers before making investment decisions.
(By arrangement with livemint.com)