Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has been abuzz with the news of Meesho’s upcoming initial public offering (IPO). However, the company has recently faced a setback after its anchor book faced investor withdrawals. The reason behind this withdrawal is the significant allocation to SBI Funds Management, which has prompted other large funds to exit in protest. Despite this, Meesho’s IPO lineup still includes global investors like GIC and BlackRock.
According to reports, the anchor book of Meesho’s IPO saw withdrawals from several prominent investors, including Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, among others. The primary reason for this withdrawal is the allocation of a significant portion of the anchor book to SBI Funds Management. The investors who withdrew their investments were reportedly unhappy with the allocation, which they felt was unfair.
The anchor book is a critical component of an IPO, as it provides a platform for institutional investors to invest in the company before the IPO opens for public subscription. The anchor book is typically allocated to large institutional investors, who are expected to hold onto their investments for a longer period. However, in this case, the allocation to SBI Funds Management seems to have caused a rift among the investors.
The allocation to SBI Funds Management is reported to be around 20-25% of the total anchor book, which is a significant portion. This allocation has raised eyebrows among other investors, who feel that it is unfair and may have been done to favor a particular investor. The investors who withdrew their investments are reportedly unhappy with the way the allocation was done and feel that it may have been done to favor SBI Funds Management.
Despite the withdrawal of investments by several prominent investors, Meesho’s IPO lineup still includes several global investors like GIC and BlackRock. These investors have reportedly invested significant amounts in the company and are expected to hold onto their investments for a longer period. The inclusion of these global investors is expected to provide a boost to Meesho’s IPO and help the company raise the desired amount.
Meesho’s IPO is expected to be one of the largest in the Indian e-commerce industry, with the company looking to raise around Rs 10,000 crore. The company has already filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and is expected to launch its IPO soon. The IPO is expected to provide a significant boost to the company’s growth plans and help it expand its operations in the Indian e-commerce industry.
The Indian e-commerce industry has been growing rapidly in recent years, with several companies looking to expand their operations and increase their market share. Meesho is one of the leading players in the industry, with a strong presence in the online retail space. The company has been growing rapidly, with its revenue increasing significantly in recent years.
The IPO is expected to provide a significant boost to Meesho’s growth plans, with the company looking to use the funds raised to expand its operations and increase its market share. The company is also looking to invest in new technologies and improve its logistics and supply chain management. The IPO is expected to be a significant milestone for the company, with several investors looking to invest in the company’s growth story.
In conclusion, Meesho’s IPO has faced a setback after its anchor book faced investor withdrawals. The reason behind this withdrawal is the significant allocation to SBI Funds Management, which has prompted other large funds to exit in protest. Despite this, Meesho’s IPO lineup still includes global investors like GIC and BlackRock. The company is expected to launch its IPO soon, with the aim of raising around Rs 10,000 crore. The IPO is expected to provide a significant boost to the company’s growth plans and help it expand its operations in the Indian e-commerce industry.
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