Upcoming IPO

The IPO of online shopping platform Meesho is about to come, which is being discussed extensively in the market. The company's issue will open for bidding on December 3. Even before the start of the bidding, there has been a sharp increase in its gray market premium, due to which it has come in the eyes of every investor. According to the latest data from the unlisted market, Meesho shares are trading at Rs 146, which is about 32% more than its original price range of Rs 111. However, GMP is based only on market expectations and is not the actual listing price.

Talking about the official price of IPO, its price band has been kept at Rs 105 to Rs 111 per share. The company aims to raise a total of Rs 5,421 crore from this offer, which includes issuance of new shares as well as share sale (OFS) by old investors. The largest part of this issue is the new share issue, which is worth Rs 4,250 crore. No changes have been made in this. But the share sold by old investors i.e. OFS has been reduced significantly. Earlier there was a plan to sell 17.57 crore shares, now it has been reduced to 10.55 crore shares. Due to this, the estimated value of OFS has come down to around Rs 1,172 crore.

For investors thinking of investing, the minimum lot size has been kept at 135 shares. The distribution of shares will be the same as usually happens in big IPOs. Majority i.e. 75% share will be given to big institutional investors, 15% share has been kept for big non-institutional investors and 10% share has been kept for small retail investors.

when will it be allotted

Meesho IPO will open on 3rd December and close on 5th December. The allotment of shares is expected to take place on December 8. For those who do not receive shares, refunds may start from December 9, and the shares are also likely to reach investors' demat accounts on the same day. Listing of shares can happen on stock exchanges on December 10. Whereas big anchor investors will participate in it only on 2nd December.

Several early investors are selling part of their stake in the OFS, which includes Elevation Capital, Peak XV Partners, Venture Highway, Y Combinator Continuity, Sarin Family India and some other investors. Some founders are also selling some stake, but even after the issue they will still have a substantial stake in the company.