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 is expected to be one of the largest in the country’s history. However, the company’s anchor book has faced a significant setback after a large allocation to SBI Funds Management, prompting several other major investors to withdraw their participation in protest. According to reports, the investors who withdrew their participation include Capital Group, Aberdeen Group, ICICI Prudential Asset Management, Nippon India Life Asset Management, and several others.
The controversy surrounding Meesho’s anchor allotment to SBI Funds Management has raised eyebrows among investors and market observers. 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 offering. The allocation of a significant portion of the anchor book to SBI Funds Management has been seen as a move to favor a domestic investor over other large funds.
Despite the protests from investors, Meesho’s IPO lineup still includes some of the world’s largest and most prominent investors, such as GIC and BlackRock. The company’s ability to attract such high-profile investors is a testament to its strong growth prospects and the potential for long-term returns. However, the controversy surrounding the anchor allotment has raised questions about the company’s allocation strategy and its relationship with domestic investors.
The anchor book is a mechanism that allows investors to participate in an IPO before the actual offering takes place. It provides a way for companies to gauge investor interest and to allocate shares to key investors. The anchor book is typically allocated to large institutional investors, such as mutual funds, pension funds, and sovereign wealth funds. In the case of Meesho’s IPO, the anchor book was allocated to a mix of domestic and international investors.
The allocation of a significant portion of the anchor book to SBI Funds Management has been seen as a move to favor a domestic investor over other large funds. SBI Funds Management is one of the largest asset managers in India, with a significant presence in the country’s mutual fund industry. The company’s allocation of a large portion of the anchor book to SBI Funds Management has been seen as a way to support a domestic investor and to promote the development of the Indian capital markets.
However, the move has been met with resistance from other large investors, who feel that they have been unfairly excluded from the anchor book. The investors who withdrew their participation in protest have expressed concerns about the allocation strategy and the lack of transparency in the process. They have also questioned the company’s decision to favor a domestic investor over other large funds.
The controversy surrounding Meesho’s anchor allotment to SBI Funds Management has raised questions about the company’s relationship with domestic investors. Meesho has been one of the fastest-growing e-commerce companies in India, with a strong focus on supporting small and medium-sized enterprises (SMEs). The company’s decision to allocate a significant portion of the anchor book to SBI Funds Management has been seen as a way to support a domestic investor and to promote the development of the Indian capital markets.
However, the move has also raised concerns about the company’s ability to manage its relationships with large investors. The withdrawal of several major investors from the anchor book has been seen as a setback for the company, and has raised questions about its ability to attract and retain large investors. Meesho will need to work to rebuild its relationships with these investors and to demonstrate its commitment to transparency and fairness in its allocation strategy.
In conclusion, the controversy surrounding Meesho’s anchor allotment to SBI Funds Management has raised questions about the company’s allocation strategy and its relationship with domestic investors. Despite the protests from investors, Meesho’s IPO lineup still includes some of the world’s largest and most prominent investors, such as GIC and BlackRock. The company will need to work to rebuild its relationships with large investors and to demonstrate its commitment to transparency and fairness in its allocation strategy.
As the Indian e-commerce industry continues to grow and evolve, companies like Meesho will need to navigate complex relationships with large investors and to manage their allocation strategies carefully. The controversy surrounding Meesho’s anchor allotment to SBI Funds Management is a reminder of the importance of transparency and fairness in the allocation process, and the need for companies to manage their relationships with large investors carefully.
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