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 a 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, indicating a strong interest in the company’s growth potential.
According to reports, Meesho had allocated a substantial portion of its anchor book to SBI Funds Management, which did not sit well with other large investors. As a result, several prominent funds, including Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, among others, withdrew their investments from the anchor book. This move is seen as a protest against the significant allocation to SBI Funds Management, which was perceived as unfair by other investors.
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 public issue. The anchor investors are typically allocated a significant portion of the IPO, and their investment helps to set the tone for the public issue. However, in Meesho’s case, the allocation to SBI Funds Management seems to have created a rift among other investors, leading to a withdrawal of their investments.
Despite this setback, Meesho’s IPO lineup still boasts an impressive list of global investors, including GIC and BlackRock. These investors have shown a strong interest in Meesho’s growth potential, which is a testament to the company’s robust business model and future prospects. Meesho’s ability to attract such prominent investors is a positive sign, indicating that the company’s IPO is still on track to be a success.
The controversy surrounding the anchor allotment to SBI Funds Management highlights the complexities of the IPO process. The allocation of shares to anchor investors is a delicate task, as it requires a balance between attracting prominent investors and ensuring that the allocation is fair and transparent. In Meesho’s case, the significant allocation to SBI Funds Management seems to have created a perception of unfairness among other investors, leading to their withdrawal.
The withdrawal of investments by prominent funds like Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management is a significant blow to Meesho’s IPO. These funds are among the largest and most respected in the industry, and their withdrawal is likely to have a ripple effect on the IPO. However, Meesho’s ability to attract global investors like GIC and BlackRock is a positive sign, indicating that the company’s IPO is still on track to be a success.
The Meesho IPO is one of the most highly anticipated public issues in recent times, with the company aiming to raise a significant amount of capital to fuel its growth plans. The company’s business model, which focuses on social commerce and online retail, has shown strong growth potential, and investors are eager to be a part of its journey. Despite the controversy surrounding the anchor allotment, Meesho’s IPO is still expected to be a success, with the company’s strong fundamentals and growth potential driving investor interest.
In conclusion, Meesho’s IPO has faced a setback after its anchor book faced investor withdrawals due to a significant allocation to SBI Funds Management. However, the company’s ability to attract global investors like GIC and BlackRock is a positive sign, indicating that the IPO is still on track to be a success. The controversy surrounding the anchor allotment highlights the complexities of the IPO process and the need for fairness and transparency in the allocation of shares to anchor investors.
As the Meesho IPO approaches, investors will be closely watching the company’s progress and the outcome of the public issue. With its strong business model and growth potential, Meesho is well-positioned to attract investors and achieve a successful IPO. However, the company must also address the concerns of its investors and ensure that the allocation of shares is fair and transparent.
For now, Meesho’s IPO remains one of the most highly anticipated public issues in recent times, with investors eager to be a part of the company’s growth journey. As the company navigates the complexities of the IPO process, it must also ensure that it maintains the trust and confidence of its investors.
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