Meesho: Domestic Funds Buy 15.18 Cr Shares Post-IPO

THE PIP (TL;DR)

This shift in ownership signals growing domestic confidence in India’s digital economy, influencing your tech-focused mutual fund investments. Domestic mutual funds collectively added over 15.18 crore Meesho shares in the June quarter of FY27 after the IPO lock-in expired. This occurred as some foreign investors reduced their holdings to manage their portfolios, creating liquidity. For you, it means your mutual fund investments are increasingly backing Indian tech companies, diversifying the shareholder base towards long-term public market ownership.

Indian mutual funds significantly increased their investment in Meesho during the June quarter of FY27. This move happened as several early foreign investors reduced their holdings following the expiry of the company’s post-IPO lock-in period on June 9. This shift reflects a growing confidence among Indian institutional investors in Meesho’s long-term prospects.

After the lock-in period ended, making nearly 68% of Meesho’s outstanding equity eligible for trading, mutual funds collectively added over 15.18 crore shares. This action boosted their combined ownership to 7.93% from 4.72% at the end of March. The number of mutual fund schemes investing in Meesho also rose from 23 to 27, indicating broader domestic interest.

Conversely, foreign company ownership declined from 65.51% to 62.05%, with seventeen foreign companies exiting Meesho’s cap table. Fidelity, for instance, sold nearly 5.98 crore shares, and Astrend India offloaded 1.06 crore shares. This selling was primarily attributed to portfolio management by early investors rather than concerns about Meesho’s business fundamentals, creating an opportunity for domestic buyers.

Indian institutional investors, including SBI Mutual Fund, Invesco India Mutual Fund, and Aditya Birla Sun Life Mutual Fund, were the primary buyers. Domestic Alternative Investment Funds (AIFs) also increased their holdings from 2.59 crore shares to 3.74 crore shares. This collective domestic buying contributed to an overall rise in Indian ownership to 8.89% from 5.55% during the quarter, signifying a maturing shareholder base.

ONE THING TO CONSIDER TODAY

Now is a good moment to review the underlying holdings within your equity mutual funds to understand where domestic money is increasingly flowing and how it aligns with your long-term investment strategy in the digital economy.