New Delhi: SoftBank-backed e-commerce firm Meesho is aiming to raise Rs 5,421 crore through its initial public offering (IPO), which opens for subscription on December 3.The company has fixed a price band of Rs 105 to Rs 111 per share, valuing Meesho at Rs 50,096 crore (USD 5.6 billion) at the upper end.In its public announcement on Friday, Meesho said the maiden public offering will close on December 5, with anchor investors set to receive their allocations on December 2.
The IPO will comprise a fresh issue of shares worth Rs 4,250 crore, along with an offer for sale (OFS) of 10.55 crore shares valued at Rs 1,171 crore at the upper band, taking the total issue size to Rs 5,421 crore.The offer for sale includes sale of equity shares by some of Meesho's early investors, including Elevation, Peak XV, Venture Highway and Y Combinator, among others.
Meesho plans to utilise proceeds for investment in cloud infrastructure; marketing and brand initiatives as well funding inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.The company will make its debut on stock market on December 12.Overall, 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
In FY25, Meesho connected over 5 lakh transacting sellers with 199 million annual transacting users, facilitating 1.8 billion placed orders.The company's Net Merchandise Value (NMV) grew 29 per cent year-on-year to Rs 29,988 crore in FY25, following 21 per cent growth in FY24.In e-commerce, NMV refers to the cumulative checkout value of successfully delivered orders inclusive of taxes. It is a core measure of platform health as it reflects the strength of customer adoption and repeat usage, making it a key driver of revenue, margins, and cash flow across the ecosystem.
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Financially, the company posted a net loss at Rs 3,942 crores for FY25, primarily due to one-time exceptional item, including reverse flip tax and perquisite tax which were necessary for the company's transition to a public structure.
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