Home / Business and Economy / Meesho IPO Anchor Book Hit By Major Investor Pullouts
Meesho IPO Anchor Book Hit By Major Investor Pullouts
2 Dec
Summary
- Several major investors withdrew from Meesho's anchor book.
- A dispute over share allocation to SBI Funds management triggered withdrawals.
- Meesho aims to raise up to 54.2 billion rupees in its IPO.
Meesho Ltd.'s upcoming initial public offering encountered turbulence as its anchor book saw several prominent investors withdraw their commitments. This significant pullout occurred after the Indian e-commerce firm reportedly allocated about a quarter of the anchor shares to SBI Funds Management Pvt., India's largest asset manager. The move sparked pushback from other large funds, leading to their withdrawal from the process.
Among the investors who opted out were Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential Asset Management Co., Nippon India Life Asset Management Ltd., and Nomura Asset Management. Many of these funds had sought allocations comparable to SBI Funds, viewing the decision as a protest. However, Meesho's anchor list still features notable global names such as sovereign wealth funds GIC Pte and Abu Dhabi Investment Authority, and long-only investors like Fidelity International and BlackRock Inc.
The episode highlights the strong demand for Indian tech startups entering the public market, as seen in recent successful IPOs. Meesho, a marketplace connecting small manufacturers with price-sensitive consumers, plans to raise as much as 54.2 billion rupees. The share price is set between 105 rupees and 111 rupees, with existing shareholders also selling portions of their stakes in the offering.
