MUMBAI: The opening week of December is set to flood the primary markets with 11 IPOs, three on the mainboard and the rest on the SME platfroms. The initial offer series is led by the Softbank-backed e-commerce major Meesho opening on December 3 with a Rs 5,422-crore (almost 40% lower than initially planned) share sale, and all 11 issuers combined are rasing over Rs 7,000 crore, helping the overall IPO market to cross the record Rs 1,59,784 crore fundraising achieved last year.
The primary market has already raised Rs 1,52,623 crore till November 14. The street had set a record last rear mopping up Rs 1,59,784 crore through the primary markets. All the three mainboard issues--Meesho, Aequs and Vidya Wires are opening on December 3. Meesho issue, comprising Rs 4,250 crore of fresh issue and Rs 1,055 crore in OFS, values the company at nearly Rs 50,000 crore and hands 1,240–5,54,900% gains to founders (Vidit Aatrey and Snajeev Kumar who makes the maximum gain of 5,54,900% over his acquisition cost) and early investors like Elevation, Peak XV and YC Continuity Fund.
The company on Friday set the price band at Rs 105–111 a share, valuing the platform at nearly Rs 50,096 crore at the upper end. At the upper end of the price band, OFS proceeds fall to about Rs 1172 crore, down from Rs 1,950 crore earlier, while the fresh issue component stays unchanged at Rs 4,250 crore, taking the overall issue size to Rs 5,422 crore, which is almost 40% lower than initially planned.
The Bengaluru-based Meesho, which competes with Walmart's Flipkart and Amazon, was targeting a post-money valuation of around $5.93 billion or Rs 52,500 crore through the issue. The two founders, Aatrey and Kumar together hold over 19 percent stake in the company and will be diluting just about 1 percent combined. Cofounder and chairman Aatrey, who holds 47.25 crore shares representing an 11.1 percent stake, emerges as one of the biggest beneficiaries.
Acquired at an average price of just Rs 0.06 a share, Aatrey's holding is now valued at Rs 5,245 crore at the top end of the price band—more than 1800x of the earlier value of roughly Rs 2.84 crore. Cofounder and CTO Kumar stands to gain just as handsomely. Kumar owns 31.57 crore shares or a 7.41 percent stake, purchased at a wafer-thin average of Rs 0.02 a share.
With the new valuation, Kumar's stake is now worth Rs 3,504 crore, a meteoric leap from about Rs 63 lakh earlier—an astonishing rise of nearly 5,500 times. Early institutional investors are riding the same wave. Elevation Capital (formerly Saif Partners), which owns 57.95 crore shares amounting to a 13.6 percent stake, had entered Meesho at an average cost of Rs 3.04 a share. Its holding, valued earlier at Rs 177 crore, now balloons to Rs 6,433 crore—marking an over 3,500-fold surge.
Peak XV Partners, holding 48.12 crore shares or 11.3 percent at an average acquisition price of Rs 4.29 a share, is also set for substantial gains. Its stake, earlier valued at Rs 207 crore, now stands at an impressive Rs 5,342 crore, reflecting a multifold expansion of nearly 2,500 percent.
YC Continuity Fund, which holds 5.2 crore shares or 1.22 percent entered at an average of Rs 1.02 a share. Its stake is now worth Rs 576 crore, a staggering jump from Rs 5.3 crore, marking more than a 10,000-fold rise. Venture Highway’s holding will climb to Rs 175 crore from Rs 73.5 crore, while Gemini Investments’ valuation will leap to Rs 493 crore from just Rs 8.3 crore before the price band revision.
Aerospace products maker Aequs' Rs 922 crore IPO is opening on December 3 and has set price band at Rs 118-124. The issue comprises fresh issue of Rs 670 crore and an offer for sale of worth Rs251.81 crore. Under the OFS, Amicus Capital Private Equity, Amicus Capital Partners India fund II, Melligeri Private Family Foundation, Amicus Capital Partners India Fund I, and Raman Subramanian are the selling shareholders.
Incorporated in 2000, the Belgaum-based Aequs is involved in manufacturing and operating a special economic zone to offer fully vertically integrated manufacturing capabilities in the aerospace segment. The company's diverse product portfolio includes components for engine systems, landing systems, cargo and interiors, structures, assemblies and turning for the aerospace clients.
Vidya Wires is also launching its Rs 300-crore IPO on December 3, at a price band of Rs 48-52/share. The company aims to raise Rs 274 crore by issuing fresh shares, while promoters will be selling shares worth Rs 26 crore via offer-for-sale. Vidya Wires is into winding and conductivity products.