Meesho, a prominent Indian e-commerce player, submits confidential paperwork for a proposed IPO, aiming to raise approximately ₹4,250 crore. Meanwhile, Travel Food Services prepares for its own IPO, aiming to garner ₹2,000 crore.
In the bustling world of Indian business, two notable companies, Meesho and Travel Food Services (TFS), are gearing up for initial public offerings (IPOs) that promise to shake up their respective sectors.
Meesho, an e-commerce powerhouse, has confidentially filed for an IPO, aiming to raise approximately INR 4,250 crore (around USD 497.30 million) through the issue of fresh equity shares. The company, backed by investors such as Prosus, Elevation Capital, WestBridge Capital, SoftBank, and Peak XV Partners, has shown impressive financial growth in the past year. In FY 2024, Meesho's revenue climbed 33% to INR 7,615 crore, while net losses reduced sharply to INR 305 crore, indicating tighter cost controls and improved efficiency. Meesho commands a significant market share, with a 37% share in the number of orders and an 8.5% share in Gross Merchandise Value (GMV), which was around $6.2 billion.
The IPO will be managed by Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and Batlivala & Karani, and is expected to open for subscription on Monday, 7 July, and close on Wednesday, 9 July. Opting for a confidential filing allows Meesho to interact with market regulators without prematurely disclosing financials or strategic details. The IPO will also include a secondary component, with some existing investors expected to sell a portion of their stakes.
Meanwhile, TFS, an operator of food counters and lounges across India's major airports, is set to launch its INR 2,000 crore IPO. The IPO, an offer for sale (OFS) by the Kapur Family Trust, with no new shares issued, is scheduled to open on the same dates as Meesho's IPO. TFS reported a 21% year-on-year rise in revenue to INR 1,687.7 crore in FY 2025, and a 27% increase in net profit to INR 379.7 crore. The company operates in 14 Indian airports, including Delhi, Mumbai, and Bengaluru, and has a presence in Malaysia and Hong Kong. Notably, TFS is trading at a grey market premium (GMP) of INR 92, suggesting a potential listing price around INR 1,192, nearly 8% higher than the upper end of the price band.
Both companies show strong revenue growth and improving profitability metrics ahead of or following their IPOs, suggesting positive investor confidence and expectations for future operational scaling. Meesho is positioned as a major player in Indian e-commerce, while TFS leverages growth in the travel and hospitality sector through its airport concessions business.
However, the broader sentiment remains cautious, with investors staying on the sidelines ahead of the July 9 deadline set by U.S. President Donald Trump for trade tariff negotiations. Despite this, the IPOs of Meesho and TFS are likely to attract significant interest, as both companies are well-positioned for sustained growth in their respective markets.
[1] https://www.livemint.com/companies/news/meesho-files-for-ipo-to-raise-4250-crore-valuing-it-at-18-billion-11653853281030.html [2] https://www.thehindubusinessline.com/companies/meesho-files-for-ipo-to-raise-4250-crore-valuing-it-at-18-billion/article64918450.ece [3] https://www.bloombergquint.com/onweb/travel-food-services-to-launch-2000-crore-ipo-in-early-july-report
- The strategy of Meesho, an e-commerce company, involves raising approximately INR 4,250 crore through an IPO, with a focus on investing in fresh equity shares to fuel future growth, all while showcasing impressive financial growth and tight cost controls.
- In the travel and hospitality sector, Travel Food Services (TFS) is planning to raise INR 2,000 crore through an IPO, with the aim of financing growth opportunities, particularly in its airport concessions business, while reporting significant revenue growth and increased net profit in the past year.
