Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has been abuzz with the news of Meesho’s initial public offering (IPO), which has been making headlines for all the wrong reasons. In a recent development, Meesho’s anchor book faced significant withdrawals from prominent investors after a substantial allocation to SBI Funds Management. This move prompted other large funds to exit in protest, citing concerns over the allocation process. Despite this setback, Meesho’s IPO lineup still boasts an impressive list of global investors, including GIC and BlackRock.
According to reports, several notable investors, such as Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, were among those who withdrew from Meesho’s anchor book. This exodus of investors is believed to have been triggered by the significant allocation of shares to SBI Funds Management, which was seen as unfair by other investors. The anchor book is a crucial component of an IPO, as it provides a platform for institutional investors to invest in the company before the public offering.
The controversy surrounding Meesho’s anchor allotment has raised questions about the fairness and transparency of the allocation process. Investors who withdrew from the anchor book reportedly felt that the allocation to SBI Funds Management was disproportionate and favored the state-owned fund manager over other investors. This perception of favoritism has led to a loss of confidence among investors, prompting them to reevaluate their participation in the IPO.
Despite the setback, Meesho’s IPO lineup still includes a roster of esteemed global investors. GIC, a Singapore-based sovereign wealth fund, and BlackRock, a leading global asset manager, are among the notable investors who have committed to participating in the IPO. The presence of these investors is expected to lend credibility to Meesho’s public offering and provide a much-needed boost to the company’s valuation.
Meesho’s IPO has been highly anticipated, with the company seeking to raise significant capital to fuel its growth plans. The e-commerce platform has experienced rapid growth in recent years, with its user base expanding exponentially. However, the company faces intense competition in the Indian e-commerce market, with established players such as Amazon and Flipkart vying for market share.
The controversy surrounding Meesho’s anchor allotment serves as a reminder of the complexities and challenges involved in managing an IPO. The allocation process must be fair, transparent, and perceived as such by all investors. Any perception of favoritism or bias can lead to a loss of confidence among investors, ultimately affecting the success of the IPO.
In conclusion, Meesho’s IPO has hit a roadblock with the withdrawal of prominent investors from its anchor book. However, the company’s lineup still includes notable global investors, which is expected to provide a boost to its valuation. The controversy surrounding the anchor allotment serves as a reminder of the importance of fairness and transparency in the allocation process. As Meesho moves forward with its IPO plans, it will be crucial for the company to address the concerns of investors and ensure that the allocation process is perceived as fair and transparent.
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