Y Combinator has successfully executed its block deal to sell 1.05% stake in Meesho for ₹970 crore, with 4.85 crore shares changing hands at ₹200.01 per share on Monday, August 24. The floor price had been set at ₹197.5 per share, representing a 4% discount to the previous close, as reported by CNBC TV18. Y Combinator will maintain a 30-day lock-in period for further share sales, as reported by the sources. According to The Economic Times, the three entities - Y Combinator Continuity Holdings I LLC, YCS16 Holdings LLC, and YCVC Fund I L.P. - sold 4,84,79,341 shares for approximately ₹969.71 crore, with all transactions executed at ₹200.01 per share, about 2.47% below Meesho's NSE closing price of ₹205.07. This represents the second major block deal in Meesho this month, following Elevation Capital and Peak XV Partners Investments' sale of 2.27% equity stake for ₹1,949 crore to 27 investors on August 4.
The block deal attracted significant institutional interest with Nippon India Mutual Fund making the largest single purchase of 1 crore shares (0.22% of Meesho's equity) for approximately ₹200 crore. CNBC TV18 reports that HDFC Standard Life Insurance Company Ltd acquired 75 lakh shares (0.16% stake) for ₹150 crore, while Edelweiss Mutual Fund purchased 34.7 lakh shares (0.08% of the company) for ₹69.4 crore. Franklin Templeton bought another 40 lakh shares (0.09% stake) for ₹80 crore. Marquee international investors included Morgan Stanley with two separate purchases totaling 30.47 lakh shares, Goldman Sachs with 26.75 lakh shares across two entities, and Citigroup with 15 lakh shares. Other notable buyers included Societe Generale (23.75 lakh shares), BNP Paribas Financial Markets, HSBC MF, Integrated Core Strategies (Asia) Pte. Ltd., Bajaj Life Insurance, Kuwait Investment Authority, Morgan Stanley Asia Singapore, and Robeco Capital Growth Funds. The four disclosed buyers together purchased 2.34 crore shares for about ₹469.4 crore, with remaining shares bought by 16 global and domestic institutional investors whose identities were not disclosed.
The company's net loss narrowed 54% to ₹132.8 crore from ₹289.4 crore in the previous year, according to its first quarter earnings reported last month. Revenue increased 48% to ₹3,712.8 crore from the previous fiscal year. Meesho's net merchandise value grew 34% to ₹11,614 crore during the quarter, while its contribution margin improved to 4.6% in the June quarter from 4% sequentially.
Meesho shares closed marginally lower at ₹205.19 apiece on the NSE on Monday, as reported by The Hindu BusinessLine. The stock opened at ₹207.24 and moved between an intraday high of ₹212.65 and a low of ₹201.50. Despite the day's decline, the stock has demonstrated positive momentum with an 8.5% increase in the past month and a 13.45% gain this year, as reported by CNBC TV18. At the end of the first quarter, promoter entities held 16% in Meesho, while public shareholders and institutions held the remaining 84%, according to stock exchange data.
