Meesho Ltd.’s upcoming IPO hit turbulence after several major global investors backed out of the anchor book, protesting the company’s decision to allocate nearly 25% of anchor shares to SBI Funds Management, India’s largest asset manager. The development was reported by Bloomberg, citing people familiar with the matter.
The unusually high allocation to SBI Funds reportedly upset other institutional investors who demanded similar allotments. When those demands weren’t met, firms including Capital Group, Aberdeen Group Plc, Norges Bank Investment Management, ICICI Prudential AMC, Nippon Life India AMC, and Nomura Asset Management withdrew their bids.
Despite the exits, Meesho’s anchor book still includes heavyweight global names such as sovereign wealth funds GIC and ADIA, along with Fidelity International, BlackRock, Baillie Gifford, WCM Investment Management and Dragoneer Investment Group. The anchor allocation process remains underway and could still change.
The episode highlights the heightened competition around India’s tech IPOs. Recent listings such as Urban Co. and Groww’s parent Billionbrains Garage Ventures have seen strong demand amid a surge in online consumption.
Meesho’s IPO opens Wednesday, aiming to raise up to ₹54.2 billion ($603 million) with a price band of ₹105–111 per share. Existing shareholders—including Elevation Capital, Peak XV Partners and the founders—will offload part of their stake.
