Meesho block deal: Stock slips as 1.73% equity stake changes hands

Shares of Meesho Ltd slipped nearly 2% in early deals after 80 million shares of the online retailer changed hands in a block deal.  According to Bloomberg, the Meesho stock block deal involved four pre-market block trades with 1.73% stake changing hands. Buyers and sellers in the deal were not immediately known. Bloomberg also said Meesho holder increased the share sale size to $173 mn (nearly Rs 1,633 crore).

Meesho stock fell 2% to Rs 207.05 after the block deal. Market cap of the firm slipped to Rs 96,451 crore.

According to reports, Japanese technology and investment conglomerate SoftBank would sell shares worth up to Rs 1,435 crore of the online retailer in a block deal today. The bank's special purpose investment vehicle and subsidiary SVF II Meerkat DE planned to sell 7 crore shares at a floor price of Rs 205 per share, with a 3% discount to the Current Market Price (CMP).

Bank of America (BofA) and JP Morgan were the likely bankers to the deal.

SVF II Meerkat DE owned 8.60% stake in Meesho as a public shareholder of the company.

On Wednesday, Meesho stock closed 3% higher at Rs 211.70 on BSE.