Meesho faces investor protest over anchor allotment to SBI Funds
The Indian e-commerce industry has witnessed significant growth in recent years, with numerous startups emerging as major players in the market. One such company, Meesho, has been making headlines with its plans to go public. However, the company’s initial public offering (IPO) has hit a roadblock after it faced investor protest over the anchor allotment to SBI Funds Management. According to reports, Meesho’s anchor book faced significant withdrawals from large investors after a substantial allocation was made to SBI Funds Management.
The anchor book is a crucial component of an IPO, where a portion of the shares are allocated to institutional investors before the public offering. This is done to gauge the demand for the shares and to ensure that the IPO is subscribed to a certain extent. However, in Meesho’s case, the allocation to SBI Funds Management has sparked controversy among other large investors.
Reports suggest that several prominent investors, including Capital Group, Aberdeen Group, ICICI Prudential Asset Management, and Nippon India Life Asset Management, have withdrawn from Meesho’s anchor book in protest. These investors had initially shown interest in participating in the IPO but decided to exit after learning about the significant allocation to SBI Funds Management.
The reason behind this protest is not entirely clear, but it is believed that the allocation to SBI Funds Management was seen as unfair by other investors. SBI Funds Management is a state-owned investment firm, and some investors may have felt that the allocation was made to favor a domestic investor over international ones.
Despite the protest, Meesho’s IPO lineup still includes several global investors, such as GIC and BlackRock. These investors have shown confidence in the company’s growth prospects and are willing to participate in the IPO. However, the withdrawal of other large investors may impact the overall demand for the shares and affect the IPO’s success.
Meesho’s decision to allocate a significant portion of its anchor book to SBI Funds Management may have been seen as a strategic move to attract domestic investors. However, it has ultimately backfired, leading to a protest from other large investors. The company will need to re-evaluate its allocation strategy to ensure that it can attract a diverse range of investors and achieve a successful IPO.
The controversy surrounding Meesho’s anchor allotment highlights the challenges faced by companies when navigating the complex world of IPOs. The allocation of shares to institutional investors is a delicate process, and companies must balance the interests of various stakeholders to ensure a successful offering.
In recent years, the Indian IPO market has witnessed significant growth, with numerous companies going public and raising substantial amounts of capital. However, the process of allocating shares to institutional investors has become increasingly complex, with companies facing scrutiny from regulators and investors alike.
Meesho’s experience serves as a reminder that companies must be transparent and fair in their allocation strategies to avoid controversy and ensure a successful IPO. 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, but it has ultimately led to a protest from other large investors.
As the Indian IPO market continues to evolve, companies must navigate the complex landscape of institutional investors and regulatory requirements. The allocation of shares to institutional investors is a critical component of the IPO process, and companies must get it right to achieve a successful offering.
In conclusion, Meesho’s IPO has hit a roadblock after the company faced investor protest over the anchor allotment to SBI Funds Management. The withdrawal of large investors, including Capital Group and ICICI Prudential Asset Management, may impact the overall demand for the shares and affect the IPO’s success. However, the company’s IPO lineup still includes global investors like GIC and BlackRock, which is a positive sign. As the company moves forward with its IPO plans, it must re-evaluate its allocation strategy to ensure that it can attract a diverse range of investors and achieve a successful offering.
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