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Summary:

E-commerce platform Meesho’s decision to allocate a significantly larger portion of its anchor book in its upcoming IPO to SBI Mutual Fund, compared to other institutional investors, has sparked controversy. The decision, driven by Meesho’s management rather than its merchant bankers, highlights a growing trend of issuers directly engaging with investors and overriding banker recommendations. Some major investors, including Capital Group and ICICI Prudential MF, withdrew from the anchor book due to the perceived unfairness of the allocation. Meesho justified the decision citing SBI MF’s early commitment, willingness to invest post-listing, and long-term investment approach. The situation underscores the lack of clear guidelines for anchor investor allocations in India, leading to disputes over fairness and transparency. The IPO opens December 3, 2025.

News Article:

Meesho’s Anchor Investor Allocation Sparks Controversy Ahead of IPO

Moneycontrol News

Mumbai: Meesho’s upcoming IPO is facing scrutiny after the e-commerce platform’s decision to heavily favor SBI Mutual Fund in its anchor investor allocation raised eyebrows and triggered a rare split among major institutional investors.

Sources familiar with the matter reveal that Meesho management, rather than its merchant bankers, made the call to allocate approximately ₹600 crore to SBI MF, while offering significantly smaller portions to other large players like ICICI Prudential MF (₹100 crore). This discrepancy led Capital Group, Norges Bank Investment Management, ICICI Prudential MF, and Nippon India Mutual Fund to withdraw from the anchor book altogether, citing concerns about setting a precedent of unequal allocation.

“The allocation offered to us was far smaller than that of the largest domestic fund house, despite being among India’s biggest asset managers” said a senior executive at one of the fund houses who opted out.

Meesho defended its decision, citing SBI MF’s early commitment to price and quantity, willingness to invest during and after the IPO, and a history of long-term investments in new-age companies. The company emphasized the value it placed on investors who provide stability, particularly given the volatile nature of tech IPOs post-listing.

However, the incident has exposed the lack of a clear regulatory framework for anchor investor allocations in India, leaving room for subjective judgments and potential unfairness. With anchor books being oversubscribed, the process has become more opaque, and has created a multi-sided disagreement among institutional investors over what constitutes equitable distribution.

Meesho’s IPO, with a price band of ₹105-₹111 per share, opens on December 3, 2025, and closes on December 5, 2025. The IPO comprises a fresh issue of ₹4,250 crore and an offer-for-sale of ₹1,171.20 crore. The listing is expected on December 10, 2025.

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