E-commerce company Meesho IPO to open Wednesday, with price range of Rs 105-111

Ahmedabad (Gujarat) [India], December 1 (ANI): E-commerce platform Meesho is set to tap initial public offering (IPO) with its subscription starting Wednesday. The price band of the IPO offer has been fixed at a range of Rs 105 to Rs 111 per share.
The Anchor Investor Bidding Date would be one working day prior to bid/offer opening date - Tuesday.
The three-day bid/offer will close on Friday. Bids can be made for a minimum of 135 equity shares, and in multiples of similar number of shares thereafter.
The IPO offer comprises a fresh issue of equity shares aggregating up to Rs 42,500 million and an Offer for Sale of up to 105,513,839 equity shares by certain existing shareholders.
Notably, not more than 15 per cent of the shares on offer shall be available for allocation to Non-Institutional Investors ("Non-Institutional Portion") and not more than 10 per cent to Retail Individual Investors.
Speaking to ANI, Meesho CEO and Founder, Vidit Aatrey said the company's focus is to expand the business at a fast pace, and optimizing cash flows.
"For the last two years we have been cash flow positive . Actually, if you see any company valued at the net present of all its future cash flows, I think we will continue to optimize for future cash flows. Going forward, accounting profit also will keep growing as we scale our business," he told ANI.
"Today, Meesho serves biggest of manufacturers, brands, businesses of all kinds and shapes to come and sell their products and categories. The biggest value proposition that we offer is we give them the lowest cost structure so that they can serve each and every consumer in the country, who is primarily looking for affordability," he added.
Meesho will invest most of the IPO proceeds in building more tech infra, brand building, marketing, and inorganic growth opportunities, the CEO added.
According to Aatrey, 23 crore consumers bought from Meesho over the past 12 months.
Meesho makes revenue from two streams, one is logistics and the other advertising. "Both of these streams are growing at this point in time and continue to become large over time," the CEO said.
Further, with increasing use of UPI adoption in India, he said Cash on Delivery (CoD) on Meesho platfrom has decreased significantly over the years - from 95 per cent three years ago to 70 per cent now.
CoD will continue to decrease, thanks to UPI adoption and other government initiatives, he said. (ANI)