In Preparation for its IPO, Meesho Becomes a Public Entity

The board of the massive D2C e-commerce company Meesho has authorised the company's transformation into a public company in preparation for an IPO.

In an extraordinary general meeting on June 5, the board of Meesho passed a special resolution to change the company's name from "Meesho Private Limited" to "Meesho Limited", according to the startup's MCA filing.

 According to the petition, the conversion will provide Meesho more freedom to pursue access to the capital market and bring its corporate structure into compliance with the legal requirements for a business looking to go public.

According to the filing, the firm intends to remain prepared from a regulatory and compliance standpoint to facilitate such an offering when judged appropriate, even if the board has not yet authorised or started the IPO process.

In order to harmonise corporate and brand identity, the company rebranded its parent corporation more than a month ago.

Meesho Unveils INR 411 Cr Bonus Share Plan Ahead of IPO

A plan to issue 411.4 Cr bonus shares has been authorised by Meesho's shareholders before the e-commerce giant files its draft red herring prospectus (DRHP) with SEBI, the market regulator.

The proposal to issue bonus shares of INR 1 each to equity owners in a 47:1 ratio was accepted by the members at an extraordinary general meeting on May 31, according to the company's MCA filings.

The filing stated that the board of directors has been given the members' consent to issue 411.4 Cr bonus equity shares worth INR 1 each, which will be credited as fully paid-up shares to the holders of the company's existing equity shares.

The company's paid-up share capital will rise from INR 8.7 Cr to INR 420.1 Cr after the allocation. Tiger Global Management, Peak XV Partners, Prosus, Meta, and Think Investments are among the backers of the Bengaluru-based e-commerce giant.

Meesho’s IPO Preparations

By the end of 2025, the e-commerce giant is reportedly hoping to generate up to $1 billion through its first public offering (IPO). For its initial public offering (IPO), the startup has selected Morgan Stanley, Kotak Mahindra, and Citi as its bankers.

According to reports, the investors suggested valuing the public offering at $10 billion. In order to improve brand memory among its stakeholders prior to its eventual stock market offering, the business rebranded its parent corporation from Fashnear Technologies Private Limited to Meesho Private Limited last month.

 Similar actions have previously been taken by consumer services titan Swiggy, fintech unicorn Moneyview, and fast commerce startup Zepto. Meesho was first established in 2015 as a social commerce firm by Vidit Aatrey and Sanjeev Barnwal. In 2022, though, it switched to a marketplace model in order to compete with Amazon and Flipkart.