No-commission ecommerce platform Meesho noticed its IPO totally subscribed by afternoon on day 1 of opening, as heavy demand from retail buyers drove up bids, in accordance with the Bombay Inventory Trade.
On Wednesday, the 277.9 million share providing attracted bids for 322.2 million shares, reaching a subscription ratio of 1.16 occasions. The IPO noticed portion allotted to retail particular person buyers subscribed 3.24 occasions as of three PM.
On their heels, non-institutional buyers (NIIs) noticed their whole portion subscribed 1.17 occasions. Inside this, buyers bidding over Rs 10 lakh subscribed 1.07 occasions, whereas NIIs bidding between Rs 2 lakh and Rs 10 lakh noticed their portion subscribed 1.78 occasions.
Certified Institutional Patrons (QIBs), who’re typically extra energetic on the final day, noticed solely 39% bids towards the portion allotted. The section attracted bids for less than 57.6 million shares towards a suggestion of 150.3 million shares.
Lenskart’s IPO was totally subscribed by the top of day 1, Groww’s IPO was totally subscribed by the center of day, whereas Pine Labs noticed its IPO totally subscribed solely by the final bidding day.
The anchor spherical—usually a quiet prelude to Indian IPOs—stirred discontent amongst a bunch of Meesho’s institutional buyers. In keeping with stories by Bloomberg and The Financial Occasions, a bunch of institutional buyers had protested the sizeable allotment given to SBI Mutual Fund–managed schemes, questioning whether or not the state-owned fund home obtained preferential therapy and raised considerations about transparency within the allocation course of. Meesho and its bankers haven’t publicly responded.
Based mostly on the anchor allocation doc, SBI Mutual Funds dominated the anchor e book with SBI Balanced Benefit Fund receiving the most important single allocation at 8.40%. Mixed with smaller allocations to different SBI schemes, the fund home’s whole allocation seems to have exceeded 20% of the anchor portion, which sparked the controversy over potential preferential therapy.
Notably, Tiger World has taken 1.9% of the anchor allotment in Meesho’s IPO, reaffirming help for certainly one of its earliest India bets. The New York–based mostly investor first backed the corporate in 2019, taking part in its Sequence D funding spherical.
Meesho’s IPO is anticipated to shut on December 5, Friday, with shares more likely to be listed subsequent week.
Edited by Suman Singh
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