Will the Meesho listing move sentiment in an otherwise choppy liquidity environment in India’s VC-PE market? Early days but the ecommerce marketplace’s strong debut on the bourses yesterday, raising Rs 5,421 crore (over $600 million), spells a solid start.
The Bangalore-based company hit a market capitalisation of over Rs 77,000 crore ($8.5 billion) at the close of its debut trading day — a significant step-up from the under $4 billion it was reportedly valued at in its last private fundraising round.
The stock closed at Rs 162.50 on the National Stock Exchange, 46% higher than its issue price of Rs 111.
The listing is set to be a big payday for Meesho’s VC-PE backers, including Elevation Capital, Peak XV, Prosus, SoftBank and Y Combinator.
Elevation, the single largest shareholder, holds a 11.95% stake post IPO, now valued at nearly Rs 9,000 crore (a little over $1 billion) at the current share price. The VC firm first invested in the company in 2017.
Earlier in the day, Prosus, which entered Meesho in 2019, said it would continue to hold a 11.2% stake in the company post-listing. Meesho is the fourth Prosus portfolio company in India to go public in recent months after Swiggy, BlueStone and Urban Company.