SoftBank-backed Meesho has submitted revised draft documents for its initial public offering (IPO). The company plans to raise Rs 4,250 crore through a combination of fresh equity issuance and a secondary sale of shares by select investors, according to documents submitted to SEBI. The funds will be used to cover costs to build the brand.
The proposed IPO includes a fresh issue of equity worth up to Rs 4,250 crore of face value Rs 1 each and an offer for sale of up to 17,56,96,602 equity shares.
Meesho IPO objective
The company proposes to utilise the net proceeds towards funding investment for cloud infrastructure in Meesho Technologies, its subsidiary.
Part of IPO proceeds are also expected to be used for payment of salaries of existing and replacement hires for the Machine Learning and AI and technology teams for AI and technology development undertaken by Meesho Technologies, its subsidiary.
The proceeds are also expected to be utilised for expenditure towards marketing and brand initiatives, and funding inorganic growth through acquisitions and other strategic initiatives.
Meesho offer for sale: Key investors keen to dilute stake
The offer for sale involves some of Meesho’s early investors, including Elevation, Peak XV, Venture Highway, and Y Combinator, among others, who intend to offload part of their holdings as part of the IPO.
Kotak Mahindra Capital Company Limited, JP Morgan, Morgan Stanley, Axis Capital and Citigroup Global Markets India are the book-running lead managers to the issue. Promoters Vidit Aatrey and Sanjeev Barnwal also plan to sell shares as part of the OFS.
Meesho FY24 financials
In fiscal year 2024, the company recorded a revenue of Rs 7,615 crore and a loss of Rs 305 crore.