New Delhi. Only one day is left for the IPO of e-commerce company Meesho to open, but the commotion in the market is at its peak. The reason is no less interesting. There was such an uproar regarding the anchor book of the company that many big global funds stepped back together. The matter came to a head when news came that Meesho had handed over about 25% of its anchor shares (reserved share for big investors) to the country’s largest asset manager SBI Funds Management. This same thing irked other big investors. They felt that if SBI had got such a big share, then they too should have got the same treatment. Many big names protested against this and decided to stay out of the anchor book.
Which investors backed out?
According to sources, these investors said that they should also have got the allotment ratio given to SBI funds. According to the report, these big institutional investors pulled out of the anchor:
- Capital Group
- Aberdeen Group
- Norges Bank Investment Management
- ICICI Prudential AMC
- Nippon India Life Asset Management Limited
- Nomura Asset Management
All of them had demanded equality in allotment, which was not fulfilled. After this, this step is being considered as a kind of protest.
Still big names included in the lineup
Despite these protests, the names of many big investors remain in Meesho’s anchor book, such as GIC PTE, Abu Dhabi Investment Authority, Fidelity International, BlackRock, Baillie Gifford etc.
Why is investment in Indian tech startups increasing?
There is so much buzz about IPOs because in recent months, the IPOs of Indian tech startups like Urban Company and Grow have received a tremendous response. Due to rapid increase in demand for online services and e-commerce, investors are constantly focusing on these companies.
Company preparing to raise Rs 5,421 crore
The company has fixed the price band at Rs 105-111 and is preparing to raise Rs 5,421 crore. This IPO will open from tomorrow, but there is huge demand for it in the gray market. Its gray market premium (GMP) is seen at 40.54 percent, which means investors can get a profit of 40.54 percent on listing. However, the situation in the gray market is constantly changing. According to market experts, investment decisions should be taken based on the business health of the company rather than signals received from the gray market.
(Disclaimer: Investment in IPO is subject to market risks. If you want to invest money in it, then first consult a certified investment advisor. StuffUnknownwill not be responsible for any profit or loss of yours.)
