According to Nuvama Alternative & Quantitative Research, Meesho will see its six-month and beyond lock-in period opening on Wednesday, where 3,083 million shares or 68% of the company’s outstanding equity will free up for trade.
It must be noted that the end of the lock-in period does not mean all the shares will be sold in the open market. They only become eligible to be traded.
Based on Tuesday’s closing price, the value of the Meesho’s shares that will free up for trade today is worth nearly ₹51,800 crore. Currently, Meesho commands a market cap of ₹76,630 crore.
Meesho Block Deal
As soon as the lock-in ended, as many as 9.3 crore shares of Meesho or 2% of the company’s outstanding equity changed hands during the block deal window.
Based on the data available, the value of that transaction is said to be worth ₹1,540 crore.
Buyers and sellers in that deal are not immediately known.
Who Owns Stake In Meesho?
Based on the March quarter shareholding pattern, promoters of Meesho had a 16.57% stake in the company.
Among the public shareholders, Mutual Funds had a 4.91% stake, while Foreign Companies owned 68.08%.
1.85 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 1.24% stake.
Among the foreign companies, Softbank Vision Fund (SVF Meerkat (DE) LLC) had a 8.68% stake in Meesho, while Peak XV Partners owned a 1.41% stake. Peak XV Partners Investments V had a 10.16% stake, Westbridge Crossover Fund had a 3.66% stake, while Elevation Capital V had a 12.16% stake in the company at the end of the March quarter.
Why Is Jefferies Saying “Buy” Meesho?
Brokerage firm Jefferies has initiated coverage on Meesho in its note on Wednesday with a “buy” rating and a price target of ₹225, which implies an upside potential of 34% from Tuesday’s closing levels.
Meesho is building a scale-led value commerce platform anchored in affordability, discovery, & logistics efficiency, Jefferies wrote in its note, adding that a loyal user base, supported by a deep MSME supply network, is driving a strong flywheel.
Jefferies forecasts a 25% Net Merchandise Value CAGR and a 3% adjusted EBITDA margin for Meesho by financial year 2030. A negative working capital, coupled with a net cash balance sheet will support capital-efficient growth for Meesho, Jefferies said.
Shares of Meesho ended 0.2% higher on Tuesday at ₹168.35. The stock is down significantly from its post-listing high of ₹254 but remain above their issue price of ₹111.
