The buzz surrounding the Meesho IPO is reaching a fever pitch as the offering witnessed substantial oversubscription. SoftBank-backed e-commerce firm Meesho’s initial public offering (IPO) has garnered significant attention from investors. With the IPO now closed, let’s delve into the details of the subscription numbers and what they signify for the company’s future.
Strong Overall Subscription for the Meesho IPO
Meesho’s IPO witnessed an impressive 7.97 times subscription rate by the end of the second day, indicating strong investor confidence. The three-day IPO period saw bids for a staggering 2,21,60,51,730 shares against the 27,79,38,446 shares that were on offer, according to data from the National Stock Exchange (NSE). This robust demand underscores the market’s positive outlook on Meesho’s growth potential.
Category-Wise Subscription Details
A detailed look at the subscription numbers reveals enthusiastic participation from various investor segments. The Retail Individual Investors (RIIs) category was subscribed 9.14 times, highlighting strong interest from individual investors. Qualified Institutional Buyers (QIBs) also showed significant interest, with their portion being subscribed 6.96 times. Non-institutional investors (NIIs) displayed even greater enthusiasm, subscribing 9.18 times the allotted shares. The diverse participation underscores broad-based confidence in Meesho’s business model.
Meesho’s Anchor Investors Commit Over ₹2,439 Crore
Prior to the IPO opening, Meesho secured ₹2,439 crore from anchor investors, signaling strong institutional backing. This pre-IPO investment further bolstered market sentiment and instilled confidence among potential investors.
IPO Details: Size, Price Band, and Valuation
The Meesho IPO, valued at ₹5,421 crore, concluded on December 5. The company had set a price band of ₹105-111 per share, valuing Meesho at ₹50,096 crore ($5.6 billion) at the upper end of the range. The IPO comprised a fresh issue of shares worth ₹4,250 crore and an Offer For Sale (OFS) of 10.55 crore shares valued at ₹1,171 crore at the upper band.
Use of IPO Proceeds
Meesho intends to utilize the net proceeds from the fresh issue for strategic investments aimed at fueling growth. These investments include bolstering cloud infrastructure, strengthening marketing and brand initiatives, funding inorganic growth through strategic acquisitions, and addressing general corporate needs. This strategic allocation of funds demonstrates Meesho’s commitment to long-term growth and value creation.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. IPO investments are subject to market risks. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions. The author is not responsible for any investment losses incurred.
Image Credit: Financial Express
