The IPO GMP of Meesho grabs attention as the company allocates a huge share of its Rs 2,439-crore anchor book to SBI Mutual Fund. Multiple sources confirm that Meesho’s management made this decision directly, not its merchant bankers. This move sparks discussion among investors, highlighting the lack of clear rules for anchor allocations in India’s IPO market.
Direct Engagement Drives the Decision
Meesho’s management negotiates directly with SBI MF, signaling a growing trend where issuers control price and allocation before bankers step in. Consequently, SBI MF gets a larger share, ensuring stability for the IPO. This approach shows how companies now engage anchor investors proactively, reducing delays and uncertainty.
Investor Reactions and Split Opinions
Several large investors, including Capital Group, Norges Bank Investment Management, ICICI Prudential MF, and Nippon India MF, reject the anchor book. They object to the huge allocation for SBI MF. For example, SBI MF receives about Rs 600 crore, while ICICI Prudential MF gets only Rs 100 crore. Meesho refuses to change the allocation, citing prior commitments and trust in SBI MF’s support.
Why Meesho Chooses SBI MF
Meesho prioritizes SBI MF because the fund communicates early about its willingness to buy in both the anchor book and post-listing. Moreover, SBI MF holds positions long-term and supports new-age companies consistently. Meesho trusts SBI MF to stabilize the IPO, minimizing volatility after listing.
Oversubscription Highlights Market Demand
Investors oversubscribe the anchor book nearly 30 times. However, experts explain that anchor investors don’t pay upfront, so high bids don’t always reflect real demand. Still, the large allocation to SBI MF shows Meesho values stability and a long-term partner over merely balancing allocations.
Meesho IPO Details
The Meesho IPO GMP attracts investors as the IPO opens on December 3, 2025, and closes on December 5. The issue totals Rs 5,421.20 crore, with Rs 4,250 crore as a fresh issue and Rs 1,171.20 crore as an offer-for-sale. The price band ranges from Rs 105 to Rs 111 per share, valuing Meesho at roughly Rs 50,096 crore at the upper end. Investors anticipate the listing on December 10, 2025, across BSE and NSE.
Implications for the Market
This allocation strategy emphasizes early engagement with anchor investors. While it stabilizes the IPO and reduces post-listing volatility, it sparks debate over fairness and transparency. The IPO GMP of Meesho becomes a key benchmark for how issuers might manage anchor books in future IPOs.
Conclusion
The IPO GMP of Meesho generates interest for both valuation and allocation strategy. SBI MF’s large allocation shows that issuers now value stability and long-term partnerships. At the same time, objections from other investors highlight the market’s need for clearer allocation guidelines. As the IPO opens, investors eagerly watch Meesho’s listing performance and the market reaction to this unprecedented anchor allocation.
