Meesho’s 79X IPO subscription one of highest among new-age companies

The bookbuilding process for ecommerce marketplace Meesho’s initial public offering (IPO) closed Friday with investors bidding for 79 times the shares on offer — making it among the most subscribed large-sized issues for a new-age company.

Meesho’s Rs 5,421-crore saw strong interest from qualified institutional bidders (QIBs), who bid for more than 120 times the shares allocated to them, with retail investors also subscribing to the book 19 times.

By comparison, omnichannel beauty retailer Nykaa, which went public in 2021 following a Rs 5,350 crore IPO, was subscribed 52 times, as per data sourced from the BSE.


Among issues with sizes over Rs 1,000 crore, at-home services platform Urban Company by far saw the strongest subscription numbers at 104 times the shares on offer. The Gurugram-based company went public in September following a Rs 1,900 crore IPO.

Others in the list include food delivery platform Zomato (now Eternal), which was listed in July 2021. Its IPO was Rs 9,375 crore in size and was subscribed over 29 times.

On December 2, Meesho raised Rs 2,439 crore in a pre-IPO anchor allotment. Of this, Rs 1,040 crore worth of shares was allocated to domestic mutual funds.

SBI Mutual Fund picked up almost a quarter of Meesho’s anchor book, while others, such as Singapore’s sovereign wealth fund GIC, asset managers BlackRock and Fidelity, and hedge fund Tiger Global, also participated.

Meesho's stock will be listed on the exchanges on December 10.

The Bengaluru-based e-tailer — the first horizontal ecommerce marketplace to list in India — is going public with a Rs 5,421 crore offering, which will value Meesho at Rs 51,535 crore on a post-money basis. It is raising Rs 4,250 crore in fresh capital from the IPO.

Brokerages, including ICICI Direct and SBI Securities, had given ‘subscribe’ calls on the company’s stock, highlighting improving unit economics, stronger contribution margins, and consistent free cash flow generation over the past two years.

Also Read: Meesho IPO: There’s no slowdown, India among the least penetrated ecommerce markets globally: CEO Vidit Aatrey