**Meesho’s Anchor Book Faces Investor Withdrawals Ahead of IPO**
Meesho Ltd., the Indian e-commerce platform, encountered challenges with its anchor book as several prominent investors opted out. This occurred after the company reportedly allocated around 25% of the shares in this tranche to SBI Funds Management Pvt., India’s largest asset manager. This decision led to pushback from other significant funds, who preferred allocations comparable to those of SBI Funds and subsequently withdrew their interest.
The anchor book, which is a segment of shares set aside for institutional investors, is scheduled to open on Tuesday, just before Meesho’s initial public offering (IPO) launches on Wednesday. Notable investors that withdrew include Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential Asset Management Co., Nippon India Life Asset Management Ltd., and Nomura Asset Management. Their withdrawals were perceived as a form of protest against the allocation strategy.
Despite these setbacks, Meesho’s anchor lineup still includes several global investors, such as sovereign wealth funds like GIC Pte and Abu Dhabi Investment Authority, along with major long-only investors including Fidelity International, BlackRock Inc., and Baillie Gifford. The final composition of the anchor allotment is still being finalized, and changes may occur.
This situation highlights the strong demand for Indian tech startups as they approach public listings. Recent IPOs from digital platforms, including Urban Co. and Billionbrains Garage Ventures Ltd., have seen significant interest, reflecting the rapid consumer shift towards online services and commerce.
Meesho, based in Bengaluru, connects small manufacturers with price-sensitive consumers in smaller Indian cities and aims to raise up to 54.2 billion rupees (approximately $603 million) through this IPO. The shares are priced between 105 rupees and 111 rupees each, as indicated in a recent advertisement. Existing shareholders, including Elevation Capital V Ltd., Peak XV Partners Investments V, and Meesho’s founders, will also be selling shares in this offering.
**FAQ**
*What is Meesho’s IPO goal?*
Meesho aims to raise up to 54.2 billion rupees (around $603 million) through its upcoming IPO.
