In a bold move signaling its IPO ambitions, Bengaluru-based e-commerce giant Meesho has officially begun its transformation into a public company. In an extraordinary general meeting held on June 5, the board passed a special resolution to change the company’s name from Meesho Private Limited to Meesho Limited, a crucial legal step for any business planning to list on the stock exchange.
According to filings with the Ministry of Corporate Affairs (MCA), this conversion is intended to give Meesho the structural flexibility required to raise capital from public markets and comply with listing regulations. While the company hasn’t filed its draft red herring prospectus (DRHP) with SEBI yet, this restructuring makes it clear that Meesho wants to stay ready for action when the timing is right.
Credits: Startuptalky
Background
This development comes just weeks after Meesho’s parent company rebranded itself from Fashnear Technologies Private Limited to Meesho Private Limited, streamlining its brand and corporate identity—a tactic used by fellow IPO-hopefuls Swiggy, Zepto, and Moneyview.
In this article, we will delve into Meesho’s major corporate moves as it gears up for its much-anticipated IPO, including its transformation into a public limited company, a massive bonus share issuance, and key milestones in its journey toward listing.
Massive Bonus Share Issue Sparks Buzz
In a move likely to delight existing investors and increase stock liquidity, Meesho approved a whopping INR 411.4 crore bonus share issuance just ahead of its planned IPO. On May 31, shareholders gave their nod to issue bonus equity shares at a 47:1 ratio, meaning every equity shareholder will receive 47 new shares for each one they currently hold.
Each share will be valued at INR 1, and the entire issue will be credited as fully paid-up bonus shares, according to the MCA filings. This move will raise Meesho’s paid-up capital from INR 8.7 crore to INR 420.1 crore, significantly boosting its equity base.
Bonus share issuances are often used by companies heading toward public listing as a way to increase the number of outstanding shares, improve trading liquidity post-IPO, and reward loyal shareholders without diluting ownership.
Lining Up the Big Guns: Meesho’s IPO Strategy
Meesho is reportedly targeting a $1 billion IPO by the end of 2025, and is already in talks with top-tier investment banks. Sources suggest that Morgan Stanley, Citi, and Kotak Mahindra have been roped in as lead bankers for the offering.
Valuation discussions are said to be hovering around $10 billion, reflecting Meesho’s sharp rise in India’s highly competitive e-commerce space. Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho originally gained popularity as a social commerce platform empowering small sellers and resellers. But in 2022, the company pivoted to a pure-play marketplace model, going head-to-head with giants like Amazon and Flipkart.
With a lean operating model, zero seller commission, and deep penetration in Tier 2 and 3 cities, Meesho has become a force to reckon with in India’s digital retail sector.
Investors and Momentum: The Wind Beneath Meesho’s Wings
Meesho’s meteoric growth is backed by an enviable investor lineup, including Tiger Global Management, Prosus, Meta (formerly Facebook), Peak XV Partners, and Think Investments. These heavyweight backers not only provide credibility but also position the company as a high-potential IPO candidate in global markets.
This investor confidence has enabled Meesho to scale rapidly while keeping its unit economics in check—something that’s increasingly valued in a market that’s shifted its focus from blitzscaling to profitability and sustainability.
Credits: The Economic Times
Final Thoughts: IPO in Sight, Momentum in Hand
With its legal restructuring in motion, bonus shares distributed, brand identity streamlined, and banking partners locked in, Meesho is pulling all the right levers to ensure a smooth and impactful public debut. While the IPO itself is still months away, these strategic moves make it clear: Meesho is not just preparing for an IPO—it’s aiming to dominate it.
