Meesho IPO GMP Cools Ahead of Allotment — Here’s How to Check Status

Win big day to investors, the allotment of the Meesho IPO is expected today, inducing excitement into the mar- ket. From GMP trends to refund timeliness, everything material that one should know in a nutshell.

Meesho IPO: Key Highlights in a Nutshell

• Price Band: ₹105 to ₹111
• Drift: December 3-5
• GMP Today: 38%
• Allotment Date: December 8
• Expected Listing: December 10
• Total Issue Size: ₹5,421.20 crore

Meesho Ne S. I. That opened subscription: rang on December 3 and December 5, 2021. Many applicants poured in, however; GMP is down to 42% indicating only marginal erosion today from 44.6% yesterday.

The Meesho IPO structure was a Fresh Issue followed by an Offer for Sale

Meesho moppped up ₹5,421.20 crore out of the following:

• ₹4,250 crore from a fresh issue of 38.29 crore shares
• ₹1,171.20 crore from 10.55 crore shares in the OFS by early investors

This is indicative of new capital being pumped into the company and probably the partial liquidation for some existing shareholders.

Meesho IPO: Price Offer and Listing Date

The priced IPO has been placed in the range of ₹ 105- ₹ 111 per equity share. As per the tentative listings scheduled, it is expected to get premiered through BSE and NSE on December 10.

Which Institutions are scholars managing IPOs for?

• Book Running Lead Manager: Kotak Mahindra Capital Company
• Registrar: KFin Technologies

Ipso facto, post the allotment of Meesho shares, qualified allottees need to go to the KFin portal within working hours to check Meesho IPO allotment status.

Meesho IPO LIVE: What Analysts are Expecting?

InCred Equities have admitted that Meesho's operational model chanced upon the lucrative but very challenging path of value e-commerce. The company keeps on putting on vast amounts on supply-chain optimisation against Valmo; yet, they keep bestowing most of the efficiency gains on the sellers.

Balancing margins through pricing strategies and remaining competitive in India's extremely price-sensitive market is the essential strategic decision here. Many analysts are of the view, however, that it may take some time to see a meaningful scale-up in unit economics.

Meesho: Studies of its Business Model

A zero-commission marketplace approach is the hallmark of Meesho, which is unique in the Indian e-commerce market. Let me explain this for you:

• Sellers benefit through a platform by saving on their costs.
• Buyers find products at low prices.
• Logistics partners benefit from a consistent volume of work.
• Creators enhance the product's visibility with content.
• Revenue streams of Meesho mainly come from logistics fees, advertisement revenue, and rents from malls. But, with high-low pricing (most of the cost is passed on to sellers), margins are thin.

Why Is Meesho Different and Unique?

Meesho focuses on solving the biggest challenges in India's value e-commerce segment:

• Many are after cheap or low-cost products
• Small sellers need viable ways to reach out to the public
• Logistics partners would prefer fixed volumes

Intermediary between all of these, Meesho blends a tech stack that is scalable to knit the fabric of its ecosystem. Keeping a strict focus on efficiency and affordability, Meesho promptly grew to be among India's top value e-commerce sites.