Meesho Turns into Public Company Ahead of $1 Billion IPO

E-commerce startup Meesho has formally changed its name from Meesho Private Limited to Meesho Limited as part of its conversion into a public company, as per a news report. The decision was approved at a general meeting and filed with the Registrar of Companies. This change comes ahead of the company’s planned initial public offering (IPO) worth $1 billion, or around ₹8,500 crore.

Bonus Shares Issued Before Listing

As part of the process, Meesho’s board has also cleared a bonus share issue. A total of ₹411 crore worth of bonus shares were allotted in a 47:1 ratio, increasing the company’s paid-up share capital from ₹8.7 crore to over ₹420 crore.

In the Process of Redomiciling to India

Meesho is also working on shifting its legal domicile from Delaware, US, to India. The application for this redomiciling has been submitted to the National Company Law Tribunal (NCLT). Once complete, the renamed entity, Meesho Ltd, will serve as the company’s parent in India.

IPO Plans and Lead Bankers

Although the board has not formally approved the IPO process, the company has appointed Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as advisers. The IPO is expected to value Meesho at $7-10 billion, depending on market conditions. A draft red herring prospectus is likely in the coming quarters.

Read more: Meesho IPO: Company to Issue ₹411.4 Crore Bonus Shares Before Public Listing!

Order Growth and User Data

In its latest annual update, Meesho reported 1.3 billion orders during April-December 2024, matching its total for the entire previous fiscal year. As of December 2024, Meesho had 187 million unique transacting users, up 26% year-on-year.

Company Background

Founded in 2015 by Vidit Aatrey and Sanjeev Barnwal, Meesho operates as a low-cost online marketplace. It has raised over $1.3 billion in capital from investors including SoftBank, Tiger Global, Elevation Capital, and Prosus.

Conclusion

Meesho’s name change and bonus issue signal early steps in its IPO process. Completion of its redomiciling will determine the next phase of its public listing in India.

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