India’s Meesho soars after $603 million IPO | News.az

Shares of the SoftBank Group Corp.–backed company climbed 54% in Mumbai after its $603 million initial public offering, News.Az reports, citing Bloomberg.

The performance ranks among the strongest for Indian IPOs that have raised at least $500 million this year. The stock is currently trading at 172 rupees, valuing the company at 758 billion rupees ($8.4 billion).

Meesho’s market debut comes as Indian companies rush to raise capital in the primary market, making India the fourth-largest IPO hub in the world this year. Deal numbers have already exceeded last year’s peak, with investor demand particularly strong for technology startups, a sector viewed as key to India’s economic growth.

Other firms including online marketplace Urban Co. and Billionbrains Garage Ventures Ltd.—the parent of top discount broker Groww—also recorded sharp gains on their listings. Eyewear retailer Lenskart Solutions Ltd., however, experienced a volatile debut, sparking debate over high company valuations.

About half of the 333 firms listed so far this year are trading below their offer price, according to data compiled by Bloomberg. Meesho’s strong debut may help ease any concerns about India’s hot IPO market.

Meesho runs a marketplace which connects small manufacturers with value-conscious consumers across India’s smaller cities. Its IPO was subscribed more than 79 times despite a dramatic anchor allocation round that saw several major funds walk away, Bloomberg News reported earlier this month.

The company, which became an India e-commerce heavyweight by selling Temu-like low-priced offerings, plans to deploy some of the proceeds to penetrate smaller towns in one of the world’s biggest consumer markets. It has drawn customers by selling trendy clothes with dresses priced as low as $4.

The Bengaluru-headquartered firm reported a loss of 39.4 billion rupees on revenue of about 94 billion rupees for the year ended March. Investors have largely shrugged off losses at listing-bound startups’ in recent years, focusing on their growth potential.