Ahead of its IPO, e-commerce platform Meesho’s shareholders have approved a plan to issue ₹411.4 crore worth of bonus shares, Inc42 reported.
This development comes as the SoftBank-backed startup prepares to file its draft red herring prospectus (DRHP) with market regulator SEBI.
According to the company's MCA filings, during an extraordinary general meeting on May 31, 2025, shareholders approved a plan to issue bonus shares of ₹1 each to equity shareholders at a ratio of 47:1. The filing states that, following the issuance, the company's paid-up share capital will increase to ₹420.1 crore from ₹8.7 crore.
“The consent of the members be and is hereby accorded to the board of directors of the company for the purpose of issuing 411.4 crore bonus equity shares of ₹1 each, credited as fully paid-up shares to the holders of the existing equity shares of the company,” the company stated in the regulatory filing.
Meesho ESOP Exercise
On March 31, Meesho co-founders Vidit Aatrey and Sanjeev Barnwal exercised equity shares under the company’s 2024 ESOP plan as it prepares for its initial public offering.
Meesho’s regulatory filings indicated that the board of directors approved the allotment of 20,65,211 equity shares at a face value of ₹1 each to Aatrey and 6,59,323 equity shares to Barnwal.
The co-founders were granted stock options, which they exercised after the vesting period under Fashnear Technologies Private Limited’s Employee Stock Option Plan, 2024 (ESOP 2024), converting them into equity shares. According to Entrackr, these exercised shares are valued at approximately ₹1,023 crore (around $120 million).
Meesho clarified in a statement that these shares are not additional but part of the previously allocated ESOP pool. A company spokesperson further explained that the valuation mentioned in the report is incorrect, stating that these shares carry no additional value and are simply existing ESOPs that the founders have chosen to exercise.
Meesho IPO
Meesho is preparing to go public later in 2025, aiming to raise approximately $1 billion through an initial public offering (IPO). The company has appointed Morgan Stanley, Kotak Mahindra Capital and Citi as its IPO advisers, with discussions ongoing to potentially include JP Morgan in the syndicate.
In fiscal year 2023-24, the SoftBank-backed startup significantly reduced its losses (excluding ESOP costs) to ₹53 crore, a substantial improvement from the previous fiscal year’s net loss of ₹1,569 crore. Revenue from operations grew by 33% in FY24, reaching ₹7,615 crore from ₹5,735 crore in FY23, driven by an increase in unique yearly transacting users and higher order frequency among existing customers.
In its annual report, Meesho claimed to be the first horizontal Indian e-commerce firm to achieve profitability in fiscal 2024, generating a positive free cash flow of ₹197 crore for the year.
