Meesho IPO oversubscribed 79X by day 3, led by heavy QIB demand

Ecommerce major Meesho saw its initial public offering (IPO) oversubscribed 79.2 times on Friday—the final day of subscription—driven by a late surge in demand from institutional investors.

By market close, total bids stood at about 2,196 crore shares against 27.7 crore shares on offer.

Qualified institutional buyers (QIBs), who generally enter on the third day, led the rally at close, bidding for 1,807 crore shares against their quota of 15.03 crore, translating to a subscription rate of 120.18 times.

Foreign institutions accounted for around 812.1 crore shares, while domestic financial institutions, others and mutual funds together added roughly 994 crore shares.

The IPO, which was already fully booked by mid-day on day one, was initially driven by retail participation. Individual investors placed bids for 97.14 crore shares, or 19 times the 5.1 crore reserved for them. 

Among non-institutional investors, demand was particularly sharp in the high-value segment. Bidders applying for more than Rs 10 lakh worth of shares sought 213.14 crore shares against 5.1 crore available, resulting in a subscription of about 42x. Overall, the segment for non-institutional investors was oversubscribed 38.15 times.

In comparison, the IPO for Billionbrains Garage Ventures Ltd., the parent company of investment platform Groww, was oversubscribed 17.6 times on the final day of subscription. Pine Labs saw its IPO subscribed 2.46 times on the third day, with high-net-worth individuals remaining cautious.

Lenskart's IPO saw robust demand on its final day, with the total issue oversubscribed 28 times. Unlike Lenskart, whose IPO was completely subscribed by day one, PhysicsWallah’s initial public offering drew a much stronger response on the final day of bidding, with the issue subscribed 1.8 times, reversing the subdued mood of the first two days. 

The Vidit Aatrey-led company has set a price band of Rs 105–111 a share, valuing the business at about Rs 50,096 crore at the top end. At that price, the offering will raise Rs 5,421.05 crore, including a Rs 4,250 crore fresh issue and a significantly trimmed offer for sale.