Shares of the online retailer Meesho experienced a nearly 2% decline in early trading today following a significant block deal where approximately 80 million shares, representing a 1.73% equity stake, changed hands.
While the specific buyers and sellers in the transaction were not immediately disclosed, reports indicate that Japanese technology and investment conglomerate SoftBank was a prominent seller. Its special purpose investment vehicle and subsidiary, SVF II Meerkat DE, had reportedly planned to sell 7 crore shares, valued at up to Rs 1,435 crore (approximately $173 million), at a floor price of Rs 205 per share.
This floor price represented a 3% discount to Meesho's closing price on Wednesday. SVF II Meerkat DE previously held an 8.60% stake in Meesho as a public shareholder.
Following the block deal, Meesho's stock slipped to Rs 207.05, and the firm's market capitalization decreased to Rs 96,451 crore. Investment banks Bank of America (BofA) and JP Morgan were reportedly involved as bankers for the transaction.