Meesho’s anchor book sees 32x demand, draws Rs 80,000 crore worth of bids; SBI MF, Tiger Global and BlackRock among investors

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IPO-bound e-commerce platform Meesho has attracted overwhelming interest from global and domestic investors, with its anchor book oversubscribed more than 32 times, people familiar with the developments told Moneycontrol.

SBI Mutual Fund, the country’s largest mutual fund house, along with Tiger Global and BlackRock, led the bids for the Rs 2,439 crore ($292 million) anchor tranche, which drew commitments worth nearly Rs 80,000 crore, the people said.

Other investors including GIC, ADIA, Fidelity International, Fidelity Management & Research, Baillie Gifford, Wellington and Goldman Sachs Asset Management also bid to participate in the anchor round.

“WCM Investment Management, a well recognised and global quality-growth specialist fund has also bid as part of the anchor book,” a source said.

Meesho did not reply to Moneycontrol’s queries.

Dragoneer Investment Group, Morgan Stanley Counterpoint Global and Kora Capital are also participating, the people said. On the domestic side, Birla Mutual Fund, Axis Mutual Fund, Mirae Asset Mutual Fund and Franklin Templeton Mutual Fund expressed interest in participating in Meesho’s anchor book

Meesho will launch its closely watched IPO on Wednesday, December 3 and close on Friday, December 5. The company has fixed its price band at Rs 105-111 per share, valuing the business at nearly Rs 50,096 crore at the upper end.

Meesho's initial public offering will raise Rs 5,421.05 crore at the top of the price range, comprising a fresh issue of Rs 4,250 crore and an offer for sale (OFS) of up to 10.55 crore shares by existing shareholders. Meesho has significantly trimmed the OFS component -- cutting it by almost 40 percent from the previously planned 17.57 crore shares -- bringing OFS proceeds down to around Rs 1,172 crore, compared with Rs 1,950 crore earlier. The fresh capital component remains unchanged.

Investors can bid for a minimum lot size of 135 shares, with the sale structured as a combined fresh issue and OFS. Allocation will follow standard market norms: not less than 75 percent of the offer reserved for qualified institutional buyers (QIBs), not more than 15 percent for non-institutional investors (NIIs), and not more than 10 percent for retail investors.