Meesho Approves ₹411 Crore Bonus Issue Ahead of IPO Plans

Mumbai | 3 June 2025: SoftBank-backed e-commerce platform Meesho has approved a bonus issue worth ₹411.23 crore, marking a key milestone in its plan to go public. On May 30, 2025, the board passed a resolution to issue 1,370,770,100 fully paid-up equity shares at ₹3 each in a 1:1 ratio.

Under this arrangement, existing shareholders will receive one bonus share for every share they hold. The shares will be issued by utilising the company’s securities premium account. This non-dilutive step is typically adopted by firms preparing for an IPO to boost liquidity and make shares more affordable post-listing.

IPO Preparation in Progress

The bonus issue forms part of Meesho’s broader strategy as it gears up to file its Draft Red Herring Prospectus (DRHP) with SEBI. While the company has not confirmed an exact timeline, the IPO is expected to take place within the current financial year.

Supported by investors like SoftBank, Prosus, and Elevation Capital, Meesho has established a strong foothold in India’s e-commerce sector, especially in Tier-II and Tier-III cities, catering to price-sensitive consumers. It operates on an asset-light marketplace model that connects sellers and buyers without holding inventory.

Financials and Market Position

In FY23, Meesho narrowed its losses and posted operational profitability during certain quarters. The company has raised over $1 billion in funding, with its last valuation pegged at $4.9 billion.

India’s e-commerce market remains highly competitive, with major players like Amazon, Flipkart, and Reliance’s JioMart. Meesho differentiates itself by focusing on low-cost products, leveraging social commerce, and offering a commission-free platform to empower small sellers.

Outlook

The ₹411 crore bonus issue reflects Meesho’s effort to strengthen its capital structure ahead of public listing, enhancing investor confidence. As India’s digital commerce sector grows rapidly, Meesho’s IPO will be closely watched for its implications on high-growth, low-margin business models in emerging markets.

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