Meesho Shares Rise 3.3% After SoftBank Sells ₹1,650-Crore Stake

Meesho shares rose 3.3% to Rs 216.67 on the NSE on Friday, a day after SoftBank sold a 1.7% stake in the company for around Rs 1,650 crore.

The stake sale was carried out by SVF II Meerkat (DE) LLC, a SoftBank affiliate, which sold 8 crore Meesho shares in two tranches on Thursday at an average price of Rs 206.30 per share.

Following the stake sale, SoftBank's holding in Meesho declined to 6.87% from 8.6%. Despite the sizeable block deal, Meesho shares found strong institutional demand from both domestic and overseas investors.

Mutual funds managed by Motilal Oswal, Franklin Templeton, Canara Robeco, and HSBC were among the domestic buyers, while foreign institutional investors participating in the Meesho block deal included Fidelity, Goldman Sachs, and the Government Pension Fund of Norway.

Other buyers included HDFC Standard Life Insurance, Bajaj Life Insurance, Societe Generale, Susquehanna International Group, and Millennium Management's Integrated Core Strategies (Asia).

The latest transaction follows another major stake sale last month when private equity investors Elevation Capital and Peak XV Partners collectively offloaded a 2.3% stake in Meesho for Rs 1,949 crore.

The strong demand from institutional investors helped absorb the latest supply of Meesho shares, leading to a rebound in the share price.

Meesho has been performing well, with its Q1 revenue jumping 48% and losses halving as profitability improves. The company also expects to create over 1 million seasonal jobs across its seller and logistics network ahead of the festive season.

The stake sale by SoftBank is a significant development for Meesho, but the strong institutional demand suggests that investor sentiment remains firm.

The company's ability to attract strong demand from institutional investors is a positive sign, and the rebound in the share price suggests that the market is confident about Meesho's prospects.

Overall, the stake sale by SoftBank and the strong institutional demand are significant developments for Meesho, and the company's performance and prospects will be closely watched by investors in the coming months.