Meesho’s Rs 5,421-cr IPO to open on Dec 3

New Delhi: SoftBank-backed e-commerce firm Meesho is aiming to raise Rs 5,421 crore through its initial public offering (IPO), which opens for subscription on December 3.The company has fixed a price band of Rs 105 to Rs 111 per share, valuing Meesho at Rs 50,096 crore ($5.6 billion) at the upper end. In its public announcement on Friday, Meesho said the maiden public offering will close on December 5, with anchor investors set to receive their allocations on December 2.

The IPO will comprise a fresh issue of shares worth Rs 4,250 crore, along with an offer for sale (OFS) of 10.55 crore shares valued at Rs 1,171 crore at the upper band, taking the total issue size to Rs 5,421 crore. The offer for sale includes sale of equity shares by some of Meesho’s early investors, including Elevation, Peak XV, Venture Highway and Y Combinator, among others. Meesho plans to utilise proceeds for investment in cloud infrastructure; marketing and brand initiatives as well funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.