Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has been buzzing with activity in recent times, with several companies gearing up to go public through initial public offerings (IPOs). One such company is Meesho, a social commerce platform that has been making waves in the market with its unique business model. However, the company’s IPO plans have hit a roadblock after it faced investor protest over the anchor allotment to SBI Funds Management.
According to reports, Meesho’s anchor book faced significant withdrawals from large investors after a substantial allocation was made to SBI Funds Management. This move prompted other prominent funds to exit in protest, citing concerns over the allocation process. The anchor book is a critical component of an IPO, as it provides a gauge of investor interest and helps to set the tone for the overall issue.
The investors who withdrew from Meesho’s anchor book include some big names such as 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 made to SBI Funds Management, which they felt was unfair and not in line with the usual practices followed in the industry.
Despite the protests, Meesho’s IPO lineup still includes some prominent global investors such as GIC and BlackRock. These investors have shown confidence in the company’s business model and growth prospects, and their participation is expected to provide a boost to the IPO.
The controversy surrounding Meesho’s anchor allotment has raised questions about the allocation process and the role of anchor investors in IPOs. Anchor investors are typically large institutional investors who are allocated a significant portion of the issue size before the IPO opens for subscription. They are expected to provide stability to the issue and help to set the tone for the overall market response.
In this case, the allocation to SBI Funds Management was seen as unusually large, prompting concerns among other investors about the fairness of the process. The protests from large investors have highlighted the need for greater transparency and fairness in the allocation process, to ensure that all investors are treated equally and have an equal opportunity to participate in the IPO.
Meesho’s IPO plans have been highly anticipated, given the company’s strong growth prospects and unique business model. The company has been expanding its operations rapidly, and its social commerce platform has gained significant traction among consumers. The IPO is expected to provide a significant boost to the company’s growth plans, and the participation of global investors such as GIC and BlackRock is seen as a positive development.
However, the controversy surrounding the anchor allotment has cast a shadow over the IPO, and it remains to be seen how the issue will fare when it opens for subscription. The company will need to address the concerns of investors and provide greater transparency about the allocation process to restore confidence in the market.
In conclusion, Meesho’s IPO plans have hit a roadblock after the company faced investor protest over the anchor allotment to SBI Funds Management. While the participation of global investors such as GIC and BlackRock is a positive development, the controversy surrounding the allocation process has raised questions about fairness and transparency. The company will need to address these concerns and provide greater clarity about the allocation process to restore confidence in the market.
The development is a significant one, and it will be interesting to see how the story unfolds in the coming days. As the IPO market continues to evolve, it is essential to ensure that the allocation process is fair and transparent, to maintain investor confidence and ensure the success of IPOs.
For more information on this development, you can visit the following link: https://www.moneycontrol.com/news/business/ipo/meesho-faces-investor-protest-over-anchor-allotment-to-sbi-funds-13707038.html/amp
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