The of Softbank-backed firm Meesho saw strong investor interest across all categories on day one of bidding, receiving 2.35 times overall subscription.
Retail investors led the demand with 3.85 times subscription, followed by qualified institutional buyers (QIBs) support at 2.12 times and non-institutional investors (NIIs) at 1.80 times.
Meesho on Tuesday raised including SBI Mutual Fund, Tiger Global, ADIA, GIC, BlackRock, GIC, Fidelity, WCM investment, Goldman Sachs and Dragoneer.
The e-commerce firm aims to raise ₹5,421 crore through the IPO, which concludes on December 5. It has fixed a price band of ₹105-111 per share, valuing the company at ₹50,096 crore ($5.6 billion) at the upper end.
The IPO comprises of a fresh issue of shares worth ₹4,250 crore, and an OFS of 10.55 crore shares valued at ₹1,171 crore at the upper band.
The company will use the proceeds for investment in cloud infrastructure, marketing and brand initiatives, as well as funding inorganic growth through acquisitions and other strategic initiatives, and general corporate purposes.
Most analysts acknowledged the company’s strong position in the value-e-commerce segment, deep penetration in Tier-2 and Tier-3 markets, and its asset-light marketplace model, which has helped it scale rapidly. They noted that Meesho’s improving unit economics and declining losses make it a promising long-term growth story.
However, several brokerages also highlight risks such as intense competition, the company’s still-evolving path to profitability, and the need to sustain growth without heavy discounting.
Brokerages have largely issued a stance rather than an aggressive “subscribe” for listing gains. Overall, brokerages see potential but recommend that investors approach the issue with realistic expectations and a long-term horizon.
Aequs and Vidya Wires IPO see strong response
Two other mainboard IPOs, which opened today, Aequs and Vidya Wires, also witnessed healthy first-day subscription, largely fueled by retail buyers.
The Aequs IPO drew 3.42 times subscription on its opening day, driven largely by strong retail interest at 11.46 times. Non-institutional investors subscribed 3.40 times, while QIB participation remained modest at 0.66 times. The employee quota was subscribed 6.72 times.
The contract manufacturing firm Aequs launched its ₹922-crore IPO at a price of ₹118-124. It comprises of a fresh issue of shares worth ₹670 crore and an offer for sale (OFS) of 2.03 crore shares valued at ₹252 crore by promoters and existing investors. Ahead of the IPO, it collected ₹414 crore from anchor investors.
Vidya Wires’ IPO recorded 2.89 times overall subscription, with strong interest from retail investors at 4.02 times and NIIs at 3.42 times, while QIB participation remained subdued at 0.47 times.
The ₹300-crore IPO of Vidya Wires comprised of fresh issue of shares worth ₹274 crore and OFS of 50.01 lakh shares valued at ₹26 crore, at a price band of ₹48-52 per share. The company raised ₹90 crore from anchor investors.