Meesho Ltd. has faced a major setback a day before its IPO opened, as several investors pulled out of its anchor placement over preferential allotment to SBI Funds Management Pvt. Ltd.
The e-commerce firm is said to have allocated a quarter of its anchor book to SBI Funds, people familiar with the matter told Bloomberg News. That triggered a pushback from other large funds, including:
- Capital Group
- Aberdeen Group Plc
- Norges Bank Investment Management
- ICICI Prudential Asset Management Co. Ltd.
- Nippon India Life Asset Management Ltd.
- Nomura Asset Management
Many of these fund managers had sought allocations on a par with those of SBI Funds and opted out in what was viewed as a protest, the people said.
Even so, Meesho’s anchor line-up features several global investors, including sovereign wealth funds such as GIC Pte and Abu Dhabi Investment Authority, alongside major long-only investors like Fidelity International, BlackRock Inc., Baillie Gifford, as well as global firms like WCM Investment Management and Dragoneer Investment Group LLC, the people said.
Meesho is set to open its anchor book—a portion of shares reserved for large institutional investors—on Tuesday ahead of its IPO that opens Wednesday. The anchor allotment process is still ongoing. The final investor lineup may change.
Capital Group and Aberdeen declined to comment. Spokespersons at Meesho, SBI Funds and the others didn’t respond to requests for comment.
The episode underscores the intense demand for India’s tech startups as they move toward public listings. Recent IPOs from digital platforms including The Urban Company Ltd. and Billionbrains Garage Ventures Ltd.—the parent of discount broker Groww—have drawn heavy demand, reflecting consumers’ rapid shift toward online services and commerce.
The Bengaluru-based marketplace aims to raise as much as ₹5,420 crore in the IPO. The shares are priced at ₹105-111 apiece, according to a newspaper advertisement published on Friday.