Meesho completes reverse flip, to file DRHP in July: Report
Prosus-backed ecommerce platform Meesho has redomiciled in India and completed its reverse flip as it gears up for its initial public offering (IPO).
Hypervalue ecommerce platform Meesho has reportedly moved its domicile to India and finished the process of its reverse flip, according to filings made with Registrar of Companies (RoC).
The completion of its reverse flip comes as Meesho gears up to file its draft red herring prospectus (DRHP) within the next 2-3 weeks, according to an Economic Times report citing sources.
Meesho declined to comment on queries shared by YourStory.
Last week, the Vidit Aatrey-led company received approval from the National Company Law Tribunal (NCLT) to flip its headquarters back to India from Delaware, US. It secured a clearance to demerge with its US-based entity, Meesho Inc, and to proceed to merge with the Indian firm.
According to the report, Meesho is expected to pay $288 million in taxes to the United States government as part of its reverse flip. This would be one of the largest tax bills paid by an Indian startup domiciled in the US.
Recently, fintech unicorn Razorpay had also completed its reverse flip from the US to India. According to an Entracker report, it is expected to pay $150 million in taxes.
Prosus-backed Meesho has been gearing up for its public debut. In April, it changed the name of its legal entity from 'Fashnear Technologies Private' to 'Meesho Private Limited'. Earlier this month, its board approved a proposal to issue 411.4 crore bonus shares to its existing shareholders. The issue increased the company’s paid-up share capital from 8.7 crore equity shares to 420 crore shares
Meesho would be the third company from Prosus's portfolio to join the race for Dalal Street. Other names include Bluestone, which the Dutch investor values at around $950 million, and Urban Company, valued at $2.4 billion.
(The story was updated to reflect additional sourcing.)
Edited by Kanishk Singh