SoftBank-backed Meesho Approves Bonus Issue Worth ₹411 Cr in Pre-IPO Move

E-commerce platform Meesho has approved a bonus share issue worth ₹411 crore, in a strategic move to restructure its capital base ahead of its anticipated initial public offering (IPO). The SoftBank-backed company passed a board resolution on May 30 to issue fully paid-up bonus shares to its existing shareholders, increasing the total number of equity shares significantly ahead of listing plans.

Bonus Issue Details

The company will issue 1,370,770,100 fully paid-up equity shares at ₹3 each, aggregating ₹411.23 crore, in a 1:1 ratio. This means existing shareholders will receive one bonus share for every share they currently hold. The move is typically aimed at enhancing liquidity and making the stock more affordable post-listing, without altering the overall value of shareholding.

The issuance will be carried out by capitalising the company’s securities premium account, a common practice among private firms preparing for market debut. Bonus issues are non-dilutive in nature and do not require shareholders to pay anything to receive the additional shares.

IPO Preparation and Market Position

The bonus share issue comes as Meesho advances preparations for its IPO. The Bengaluru-based company is expected to file its draft red herring prospectus (DRHP) with market regulator SEBI in the coming months. While the company has not officially disclosed a timeline, sources suggest that the listing could materialise within this financial year.

Meesho, backed by marquee investors including SoftBank, Prosus, and Elevation Capital, is among India’s most prominent e-commerce platforms targeting the value-conscious segment, especially in Tier-II and Tier-III cities. Its asset-light marketplace model allows small businesses and individual sellers to reach a wide consumer base without maintaining inventory.

Financial Snapshot and Funding Background

In FY23, Meesho reportedly narrowed its losses and achieved operational profitability in a few quarters. The firm has raised over $1 billion across funding rounds, with its last valuation estimated at around $4.9 billion.

The company’s capital restructuring through bonus issuance is likely aimed at optimising its shareholding structure and gearing up for regulatory and investor scrutiny ahead of the public issue.

Sector Context and Competitive Landscape

India’s e-commerce sector remains intensely competitive, with players such as Flipkart, Amazon, and Reliance-backed JioMart expanding their reach. Meesho has carved a niche by focusing on low-cost goods and social commerce tools. Its pricing strategies and commission-free model have positioned it well in the growing Bharat-focused e-retail ecosystem. Analysts will closely watch Meesho’s financial disclosures in its IPO filing, including metrics on unit economics, user growth, and monetisation models.

Conclusion

Meesho’s ₹411 crore bonus share issue reflects a calculated step in aligning its corporate structure with IPO-readiness. As India’s digital commerce space continues to expand, Meesho’s upcoming market debut will test investor appetite for high-growth, low-margin platforms operating at scale in the mass market.

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