Meesho IPO: Key Dates and Financial Snapshot
Indian e-commerce platform Meesho has officially announced the price band for its highly anticipated initial public offering (IPO). The company, backed by global investors like SoftBank, has set the price range at ₹105 to ₹111 per equity share, with each share having a face value of Re 1.
The subscription window for the public issue is scheduled to open on Wednesday, December 3, and will conclude on Friday, December 5. Prior to this, the allocation of shares to anchor investors is set for Tuesday, December 2. For retail investors, the lot size has been fixed at 135 equity shares, and bids must be placed in multiples of this number.
Allocation and Fund Utilization Strategy
The company has outlined a clear allocation strategy for the shares in its public issue. Not less than 75% of the offer is reserved for Qualified Institutional Buyers (QIBs). Non-Institutional Investors (NIIs) will have access to a maximum of 15% of the shares, while retail individual investors have a reservation of not more than 10%.
Meesho is looking to raise a substantial ₹4,250 crore through a combination of a fresh issue of shares and an Offer-for-Sale (OFS) by existing shareholders. Public shareholders plan to offload 10.55 crore equity shares through the OFS. The list of selling shareholders includes prominent names like Elevation Capital, Peak XV Partners, Golden Summit, Y Combinator, and the company's promoters.
The company has detailed plans for the proceeds from the fresh issue:
- ₹1,390 crore is earmarked for enhancing the cloud infrastructure of its subsidiary, Meesho Technologies.
- ₹1,020 crore will be directed towards marketing and branding initiatives for the same subsidiary.
- ₹480 crore is allocated for covering employee salaries, particularly for the ML and AI technology teams involved in development work.
- The remaining funds are intended for pursuing inorganic growth opportunities and general corporate purposes.
Shareholder Pattern and Path to Listing
Currently, the promoters hold an 18.5% stake in Meesho, while public shareholders own the majority 81.50%. The largest institutional shareholders are Elevation Capital (15.11%), Prosus' Naspers Ventures (12.34%), and Peak XV Partners (11.3%). Softbank's SVF II Meerkat holds a 9.3% stake.
The timeline for the IPO process is as follows. The basis of allotment for shares is expected to be finalized on Monday, December 8. The company will then initiate refunds to unsuccessful applicants on Tuesday, December 9. On the same day, the shares will be credited to the demat accounts of the successful allottees. The much-anticipated listing of Meesho's shares on the BSE and NSE is tentatively set for Wednesday, December 10.
Financially, Meesho has shown significant improvement. For the six months ending September 2025, the company reduced its losses to ₹700.7 crore, a sharp decline from the ₹2,512.9 crore loss reported in the same period the previous year. Concurrently, its revenue saw a healthy growth of 29.4%, reaching ₹5,577.5 crore.
The IPO is being managed by a consortium of leading merchant bankers, including Kotak Mahindra Capital, JP Morgan India, Morgan Stanley India, Axis Capital, and Citigroup Global Markets India. Kfin Technologies Ltd. is acting as the registrar for the issue.
