Elevation Capital, Peak XV Partners Sell 2.3% Stake In Meesho For ₹1,949 Cr; Stock Falls

Private equity firms Elevation Capital and Peak XV Partners have divested a combined 2.3% stake in e-commerce marketplace Meesho for ₹1,949 crore through open market transactions, according to block deal data on the NSE.

Following the stake sale, Meesho's shares fell nearly 1% on Wednesday to trade at ₹190.50 apiece on the National Stock Exchange (NSE).

Elevation Capital's affiliate Elevation Capital V Ltd and Peak XV Partners' arm Peak XV Partners Investments V, together sold 10.48 crore equity shares, representing nearly a 2.3% equity stake in Bengaluru-based Meesho.

The transactions were executed on Tuesday at an average price of ₹186 apiece, taking the aggregate deal size to ₹1,949.28 crore, as per the data.

After the latest transaction, Elevation Capital's holding in Meesho fell to 10.91% from 12.04%, while Peak XV Partners stake declined to 8.93% from 10.06%.

Despite the divestment, Elevation Capital and Peak XV Partners continue to remain among the largest public shareholders in Meesho, along with Naspers and SoftBank.

Naspers holds an 11.27% stake, while tech investor Softbank through its arm SVF II Meerkat (DE) LLC owned a 8.60% holding in the company.

The buyers include a mix of domestic mutual funds, insurance companies and global institutional investors.

Domestic investors comprised UTI Mutual Fund (MF), Kotak Mahindra MF, HSBC MF, Franklin Templeton MF, Aditya Birla Sun Life MF, Axis MF, and Edelweiss MF.

Among insurance firms, Factory Mutual Insurance Company, and ICICI Prudential Life Insurance purchased shares of Meesho.

Foreign investors participating in the transaction included Societe Generale, Prudential Hong Kong, Morgan Stanley, Goldman Sachs, Susquehanna International Group, Fidelity, Abu Dhabi Investment Authority, and Dendana Investments Mauritius.

Separately, Gurugram-based Elevation Capital on Tuesday sold 10.20 lakh shares in One 97 Communications, the parent of financial services firm Paytm, for over ₹139 crore through an open market transaction.