Meesho Set for Rs 50,000 Cr Valuation: Early Investors Poised to Profit
Early Meesho investors and founders brace for massive gains as IPO set at Rs 105–111 per share, valuing the e-commerce platform near Rs 50,096 crore.
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Meesho, which is an India-based e-commerce platform that focuses on providing value to its customers, has publicly announced its initial public offering (IPO) with a price range of Rs 105-111 per share. The highest point of the price range would give the company a valuation of almost Rs 50,096 crore, based on the basic number of shares that are currently outstanding.
The IPO that has been proposed is drawing interest not only from investors but also from those watching the market, since early Investors and founders will be able to claim exorbitant returns. As of the reports on November 21, Meesho, which is in competition with Amazon and Flipkart, is expecting a post-money valuation of around $5.93 billion (Rs 52,500 crore) when fully diluted shares are considered.
The co-founders of Meesho, Vidit Aatrey and Sanjeev Kumar, together own more than 18.5 percent of the company. Vidit Aatrey, who is the Chairman and CEO, has 47.25 crore shares, which is an 11.1 percent ownership. His shares were obtained at an average cost of Rs 0.06 per share; therefore, his holding is now worth Rs 5,245 crore when considering the highest price of the band, which is an increase of more than 1,800 times.
Sanjeev Kumar, who co-founded the company and is the CTO, has 31.57 crore shares, which represent 7.41 percent of the company, and he bought them for Rs 0.02 per share on average. The current valuation has raised the worth of his share to Rs 3,504 crore, which is an increase of almost 5,500 times from the original worth of Rs 63 lakh.
Besides, institutional investors are going to benefit very much. Elevation Capital, which used to be known as SAIF Partners, is the owner of 57.95 crore shares, which is a 13.6 percent stake. Its purchasing price was an average of Rs 3.04 per share, and the value of its shares is now Rs 6,433 crore, which is the increase from Rs 177 crore, thus the gain is more than 3,500 percent.
Peak XV Partners, that has a share of 48.12 crore (11.3 percent), acquired at Rs 4.29 per share now, the share of Peak XV Partners is going to be Rs 207 crore to Rs 5,342 crore, nearly 2,500 percent growth. YC Continuity Fund, which acquired a total of 5.2 crore shares at an average price of Rs 1.02 per share, now holds shares worth Rs 576 crore, an increase from Rs 5.3 crore—an astonishing 10,000 times.
Other initial backers are enjoying similarly large returns. Venture Highway’s stake increases to Rs 175 crore from Rs 73.5 crore, while Gemini Investments’ shares soar to Rs 493 crore from Rs 8.3 crore as per the updated price range.
Meesho's initial public offering (IPO) starts on December 3, and it will end on December 5. There will be the participation of anchor investors on December 6, thus it becomes one of the most talked-about listings in the year.
The firm has cut down the offer-for-sale (OFS) quite considerably, almost by 40 percent. The promoters along with the early investors will sell 10.55 crore shares, a motorization from the 17.57 crore shares which were initially suggested. With the upper price band, OFS revenues are estimated at Rs 1,172 crore, which is lower than the former estimation Rs 1,950 crore. The fresh issue component still stands at Rs 4,250 crore.
