Meesho IPO: Make big money by investing 15,000! Storm in the gray market
Meesho IPO: The highly anticipated IPO of e-commerce platform Meesho is now knocking on investors' doors. This IPO is not only in the news for its valuation, but the confidence expressed by large and prominent investors has also raised the expectations of retail investors. According to a Money Control report, the company's anchor book has been subscribed more than 32 times even before the issue opened.
The gray market premium is up to 43%, meaning there's potential for huge profits upon listing.
Meesho's highly anticipated IPO opens on December 3rd
According to the report, the world's largest investors were seen queuing up for the anchor round. Significantly, SBI Mutual Fund, along with international giants like Tiger Global and BlackRock, has placed the highest bid. These investors have committed approximately ₹80,000 crore for the anchor portion.
135 shares will cost ₹14,985
Now the question is, how much money will an average investor need to invest in this IPO? The company has set the price band for its shares between ₹105 and ₹111. As per IPO rules, investors must apply for at least one lot, which consists of 135 shares.
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If you calculate at the upper price band of ₹111, you will need to invest at least ₹14,985 for one lot. The company is aiming to raise a total of ₹5,421 crore through this IPO. This will involve issuing new shares worth ₹4,250 crore, while the remaining will be sold by existing investors through an Offer for Sale (OFS). Interestingly, the company has reduced the size of the OFS by approximately 40 percent compared to the previous period, indicating that existing investors are keen to retain their stake.
Share Popularity in the Gray Market
Before any IPO launches, its "Grey Market Premium" (GMP) is a major topic of discussion among investors. In the case of Meesho, the signs are quite encouraging. Looking at the latest data from the unlisted market, Meesho's shares are trading around ₹48 above their issue price.
Make money by investing just ₹15,000
In percentage terms, this premium amounts to approximately 43%. This means that if the market sentiment remains the same, a ₹111 share could list for around ₹159. This means that investors are likely to make substantial profits on listing day itself. However, it's important to understand that GMP is based solely on estimates and can fluctuate rapidly depending on market trends.
IPO Opens Tomorrow
The IPO will open for investors on December 3 (Wednesday) and bids can be placed until December 5 (Friday). This means you have three days to make a decision. Market experts believe that given the response to the anchor book, the retail and NII quotas may also see significant subscriptions
.