Meesho, which has been one of India’s fast-growing online shopping platforms, is now all ready to launch its Initial Public Offering on December 3.
The company now plans to raise ₹4,250 crore through its new shares. Along with this, the existing investors will sell more than 10 crore shares, thus taking the total IPO size to around ₹5,421 crore.
The offer will also stay open till December 5, and the company is also expected to list soon after the issue closes.
The IPO price band has now been set between ₹105 and ₹111 per share. At the top end of this range, Meesho’s valuation has now come close to ₹50,000 crore.
Retail buyers now must apply for a minimum lot of 135 shares.
Some portions of the issue are already reserved for institutional and non-institutional investors, while the retail investors would now also get a fair share of the total offer.
Meesho recently plans to use the funds to strengthen its cloud technology, upgrade its platform and increase marketing activity.
The company now also aims to reach more customers, especially in the areas of smaller towns and even the area of value-focused markets.
Meesho has grown very quickly and significantly by connecting lakhs of sellers with buyers who prefer low-cost and simple shopping options.
However, like any IPO, risks still continue to remain. Meesho’s future will still depend on how well it manages the ongoing competition, views its impact on the concept of controlling costs, and turns its large user base into stable profits.
Even then, its upcoming IPO is expected to draw strong attention from both retail and institutional investors.
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