Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has been abuzz with the upcoming initial public offering (IPO) of Meesho, a social commerce platform that has been making waves in the market. However, the company’s anchor book has faced a significant setback after a large allocation to SBI Funds Management, prompting several other large funds to exit in protest. Despite this, the IPO lineup still includes global investors like GIC and BlackRock, giving a boost to the company’s plans to go public.
According to reports, Meesho’s anchor book faced investor withdrawals after a significant allocation to SBI Funds Management. The anchor book is a portion of the IPO that is allocated to institutional investors before the issue opens to the public. The allocation to SBI Funds Management was seen as a controversial move, with several other large funds expressing their dissatisfaction with the decision.
Among those who withdrew from the anchor book were Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, among others. These investors were reportedly unhappy with the large allocation to SBI Funds Management, which they felt was not in line with the usual practices of anchor book allocation.
The protest by these investors is seen as a significant setback for Meesho, which was hoping to garner strong support from institutional investors for its IPO. The company had been looking to raise a significant amount of capital through the public issue, and the withdrawal of these investors could impact the overall response to the IPO.
However, despite the protest, Meesho’s IPO lineup still includes several global investors like GIC and BlackRock. These investors have shown their confidence in the company’s growth prospects and are expected to provide a boost to the IPO. The inclusion of these global investors is seen as a positive sign for Meesho, which is looking to expand its operations and increase its market share in the Indian e-commerce industry.
The controversy surrounding the anchor allotment to SBI Funds Management has raised questions about the allocation process for IPOs in India. The anchor book is meant to provide a platform for institutional investors to invest in the IPO, but the allocation process is often seen as opaque and biased towards certain investors.
The Securities and Exchange Board of India (SEBI) has been working to improve the transparency and accountability of the IPO allocation process, but more needs to be done to ensure that the process is fair and equitable for all investors. The controversy surrounding Meesho’s anchor book allocation is a reminder of the need for greater transparency and accountability in the IPO allocation process.
Meesho’s IPO is seen as a significant event in the Indian e-commerce industry, which has been growing rapidly in recent years. The company’s social commerce platform has been gaining popularity, especially among small and medium-sized enterprises (SMEs) and individual entrepreneurs. The IPO is expected to provide a boost to the company’s growth plans, which include expanding its operations and increasing its market share in the Indian e-commerce industry.
In conclusion, Meesho’s anchor book has faced a significant setback after a large allocation to SBI Funds Management, prompting several other large funds to exit in protest. Despite this, the IPO lineup still includes global investors like GIC and BlackRock, giving a boost to the company’s plans to go public. The controversy surrounding the anchor allotment has raised questions about the allocation process for IPOs in India and highlights the need for greater transparency and accountability in the process.
The Indian e-commerce industry is expected to continue growing rapidly in the coming years, driven by increasing demand for online shopping and the growth of social commerce platforms like Meesho. The company’s IPO is seen as a significant event in the industry, and its success will be closely watched by investors and industry stakeholders.
As the Indian e-commerce industry continues to evolve, it is likely that we will see more IPOs from companies in the sector. The success of these IPOs will depend on several factors, including the company’s growth prospects, the market conditions, and the allocation process for the IPO.
In the meantime, Meesho’s IPO is expected to be closely watched by investors and industry stakeholders. The company’s ability to navigate the challenges posed by the anchor book allocation controversy and to garner strong support from institutional investors will be crucial to the success of the IPO.
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