Meesho IPO
Meesho IPO: The much awaited IPO of e-commerce platform Meesho has now knocked at the doors of investors. This IPO is not only in the news for its valuation, but the way big and veteran investors have expressed confidence in this company, it has also increased the expectations of retail investors. According to a news from Money Control, the company’s anchor book issue has been subscribed more than 32 times even before it opened.
According to the report, the world’s biggest investors were seen standing in queue in the anchor round. The special thing is that SBI Mutual Fund has made the biggest bid along with international giants like Tiger Global and BlackRock. These investors have given a commitment of approximately Rs 80,000 crore for the anchor share.
Big players of domestic market are also not behind
Not only foreigners, big players of the domestic market also did not lag behind. Fund houses like Birla Mutual Fund, Axis, Mirae Asset and Franklin Templeton have also made efforts to secure their place in the anchor book. At the same time, WCM Investment Management, which focuses on quality and growth, has also shown interest in it. When such big financial institutions of the world express confidence in a company, it is considered a positive sign for the common investor as well.
Will have to pay Rs 14,985 for 135 shares
Now the question is, how much money will a common investor need to invest in this IPO? The company has fixed the price band of its shares between Rs 105 and Rs 111. As per IPO rules, investors will have to apply for at least one lot, which includes 135 shares.
If you calculate according to the upper price band i.e. Rs 111, then for one lot you will have to invest at least Rs 14,985. The company is aiming to raise a total of Rs 5,421 crore through this IPO. In this, new shares worth Rs 4,250 crore will be issued, while the remaining portion will be sold by old investors through ‘Offer for Sale’ (OFS). Interestingly, the company has reduced the size of the OFS by about 40 percent compared to earlier, which means that existing investors are willing to retain their stake in the company.
Share boom in gray market
any in the market IPO Before its arrival, its ‘Grey Market Premium’ (GMP) is the biggest topic of discussion among investors. In the case of Meesho, the signs are quite encouraging. If we look at the latest data of the unlisted market, Meesho’s share is trading about Rs 48 above its issue price.
If we look at it in percentage, this premium comes to about 43%. This simply means that if the market mood remains like this, then the share of Rs 111 can be listed around Rs 159. This means that investors are likely to get huge profits on the day of listing itself. However, it is important to understand that GMP is based only on estimation and can fluctuate rapidly as the market direction changes. Therefore, instead of considering it as a guarantee of profits, it should be seen only as an indicator.
IPO will open from tomorrow
This IPO will open for investors on 3rd December (Wednesday) and bidding can be done till 5th December (Friday). That means you will have three days to take a decision. Market experts believe that considering the response the anchor book has received, heavy subscription may be seen in the retail and NII quota as well.