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Meesho IPO: The much-anticipated IPO of e-commerce platform Meesho is now knocking on investors' doors. This IPO is not only in the news for its valuation, but the confidence expressed by large and prominent investors has also raised the expectations of retail investors. According to a report in Money Control, the company's anchor book was already subscribed to more than 32 times before the issue opened.

According to the report, the world's largest investors lined up for the anchor round. Significantly, SBI Mutual Fund, along with international giants like Tiger Global and BlackRock, placed the highest bid. These investors have committed approximately ₹80,000 crore for the anchor portion.

Big players in the domestic market are not far behind.
Not only foreign investors, but also major players in the domestic market are not far behind. Fund houses like Birla Mutual Fund, Axis, Mirae Asset, and Franklin Templeton have also made efforts to secure a place in the anchor book. WCM Investment Management, which focuses on quality and growth, has also shown interest. When such major global financial institutions express confidence in a company, it is considered a positive sign for ordinary investors.

135 shares will cost Rs. 14,985
Now the question is, how much money will an average investor need to invest in this IPO? The company has fixed the price band of its shares between Rs. 105 and Rs. 111. As per IPO rules, investors must apply for at least one lot, which consists of 135 shares.

If you calculate at the upper price band of Rs. 111, you will need to invest at least Rs. 14,985 for one lot. The company aims to raise a total of ₹5,421 crore through this IPO. New shares worth ₹4,250 crore will be issued, while the remaining amount will be sold by existing investors through an offer for sale (OFS). Interestingly, the company has reduced the size of the OFS by approximately 40 percent compared to the previous one, indicating that existing investors are keen to retain their stake in the company.

Share Popularity in the Gray Market

Before any IPO launches, its "Grey Market Premium" (GMP) is a major topic of discussion among investors. In the case of Meesho, the signs are quite encouraging. Looking at the latest data from the unlisted market, Meesho's shares are trading around ₹48 above their issue price.

In percentage terms, this premium amounts to approximately 43%. This means that if the market sentiment remains the same, a ₹111 share could list at around ₹159. This means investors have the potential to make significant profits on the listing day itself. However, it's important to understand that GMP is based solely on estimates and can fluctuate rapidly depending on market trends. Therefore, it should be viewed only as an indicator rather than a guarantee of profits.

IPO Opens Tomorrow
The IPO will open for investors on December 3 (Wednesday), and bids can be placed until December 5 (Friday). This means you have three days to make a decision. Market experts believe that, given the response to the anchor book, the retail and NII quotas may also see heavy subscriptions.

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