Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has been abuzz with the news of Meesho, a social commerce platform, facing investor protests over its anchor allotment to SBI Funds Management. According to reports, Meesho’s anchor book faced significant withdrawals from other large funds after a substantial allocation was made to SBI Funds Management. This unexpected turn of events has raised eyebrows among investors and industry experts, prompting a closer look at the dynamics of the Indian IPO market.
Meesho, which has been one of the most successful social commerce platforms in India, had been gearing up for its initial public offering (IPO). As part of the IPO process, the company had allocated a significant portion of its anchor book to SBI Funds Management. However, this move did not go down well with other large funds, which had also been considering investing in Meesho’s IPO. The allocation to SBI Funds Management was seen as a preferential treatment, prompting other funds to withdraw their investments in protest.
Among the funds that withdrew their investments were Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, among others. These funds had been keenly watching Meesho’s growth trajectory and had been considering investing in the company’s IPO. However, the allocation to SBI Funds Management was seen as a signal that the company was not treating all investors equally, leading to a loss of confidence among these funds.
Despite the withdrawal of these funds, Meesho’s IPO lineup still includes several global investors, such as GIC and BlackRock. These investors have been bullish on Meesho’s growth prospects and have chosen to stay invested in the company’s IPO. The presence of these global investors is seen as a positive sign for Meesho, which is looking to raise funds to expand its operations and strengthen its position in the Indian e-commerce market.
The controversy surrounding Meesho’s anchor allotment to SBI Funds Management highlights the complex dynamics of the Indian IPO market. The allocation of anchor books is a critical aspect of the IPO process, as it helps to gauge investor interest and set the tone for the overall IPO. However, the allocation process can also be fraught with controversy, as seen in the case of Meesho.
The Indian IPO market has been witnessing a surge in activity in recent times, with several companies looking to raise funds through public listings. However, the market is also becoming increasingly competitive, with investors becoming more discerning about the companies they invest in. The controversy surrounding Meesho’s anchor allotment is a reminder that investors are watching the IPO process closely and are not afraid to speak out if they feel that the process is not fair or transparent.
In the case of Meesho, the company’s decision to allocate a significant portion of its anchor book to SBI Funds Management may have been seen as a strategic move to secure the support of a large investor. However, this move backfired, as other funds felt that they were being treated unfairly. The controversy highlights the need for companies to be transparent and fair in their allocation of anchor books, ensuring that all investors are treated equally and with respect.
As Meesho moves forward with its IPO plans, the company will need to address the concerns of investors and demonstrate that it is committed to transparency and fairness. The company’s growth prospects and financial performance will be closely watched by investors, who will be looking for signs that the company is on a solid footing. The controversy surrounding the anchor allotment to SBI Funds Management is a setback for Meesho, but it is not a deal-breaker. The company still has a strong growth story to tell, and its IPO is likely to attract significant interest from investors.
In conclusion, the controversy surrounding Meesho’s anchor allotment to SBI Funds Management is a reminder of the complexities of the Indian IPO market. The allocation of anchor books is a critical aspect of the IPO process, and companies must be transparent and fair in their allocation of these books. Meesho’s decision to allocate a significant portion of its anchor book to SBI Funds Management may have been seen as a strategic move, but it ultimately backfired, leading to the withdrawal of other large funds. Despite this setback, Meesho’s IPO lineup still includes several global investors, and the company’s growth prospects remain strong.
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