Meesho’s choice to allocate an unusually large portion of its ₹2,439-crore anchor book to SBI Mutual Fund was made directly by its leadership rather than by its investment bankers, according to several people aware of the discussions. The decision highlights a broader trend in India’s IPO market, where companies are increasingly holding early conversations with potential investors, negotiating allocations themselves and, at times, disregarding banker advice. The situation also underscores the lack of a clear framework for “fair” anchor distribution, leaving room for subjective calls that can trigger disagreements among institutional investors.
The allocation sparked rare dissent among major funds. Capital Group, Norges Bank IM, ICICI Prudential MF and Nippon India MF exited the anchor process, unhappy with the heavy preference shown to SBI MF. Executives said they feared setting an unhealthy precedent, as the offer made to them was significantly smaller than that given to India’s largest domestic fund house.
Meesho reportedly offered around ₹600 crore to SBI MF but only ₹100 crore to ICICI Prudential MF. The company refused any revision, citing prior commitments and SBI MF’s long-term investment approach. In the final list, SBI MF secured ₹603 crore, far ahead of other recipients such as GIC–MAS at ₹200 crore and Fidelity at ₹148 crore. Meesho valued SBI MF’s early clarity, long-horizon investing style and willingness to support the stock post-listing. The IPO, priced at ₹105–₹111 per share, opens December 3–5 and values Meesho at roughly ₹50,096 crore.
