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Meesho secures NCLT approval for reverse flip from US to India
- E-commerce unicorn Meesho has obtained approval from India’s NCLT to demerge from its U.S.-based holding company and relocate its headquarters back to India.
- The move is in line with a trend where more Indian startups are seeking to list on Indian stock exchanges.
- The tribunal's approval allows Meesho to merge its U.S. and Indian entities to complete its redomiciling process, essential for its upcoming IPO around Diwali this year.
- Meesho aims to align its corporate structure with its day-to-day business footprint.
- The relocation involves potential costs, with Meesho expected to pay up to $300 million in taxes to the U.S. government.
- Other prominent startups like Razorpay, PhonePe, Groww, and Zepto have also relocated to India, driven by the maturity of Indian capital markets and regulatory preferences.
- Meesho is set to file its draft red herring prospectus with SEBI, targeting to raise up to $1 billion in its IPO at a valuation of $10 billion.
- The company has transitioned to a public limited company and closed a $550 million funding round this year, with lead investors including Tiger Global and Think Investments.
- Meesho has appointed Kotak Mahindra Capital, Citi, JP Morgan, and Morgan Stanley as lead bankers for its public issue.
- The move is part of a larger trend in India's startup ecosystem, with companies like Flipkart and Groww also gearing up for IPOs on Indian bourses.
- Meesho will contribute to reshaping India's startup landscape, leveraging SEBI’s confidential filing process for public offerings.
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