E-commerce business Meesho’s board of directors has given its go ahead for its conversion into a pubic entity as the business moves towards readiness to launch an initial public offering.

“The company is currently exploring various strategic alternatives for its long-term growth and value enhancement, which may include, at an appropriate time, an initial public offering of its equity shares and listing on a recognised stock exchange in India,” wrote Meesho in a filing with the Registrar of Companies, ET Retail reported. “While the board of directors has not yet approved or initiated any IPO process, the company intends to maintain readiness from a regulatory and compliance perspective to enable such an offering when deemed appropriate.”

Making the conversion from a private limited company to a public limited company is needed for a business to prepare for an IPO in India. Along with this transition, Meesho is also undertaking the moving of its domicile from the US to India. As part of this, the business has applied to the National Company Law Tribunal to approve its domicile change, the Economic Times reported.

Once Meesho is officially based in India, the renamed entity ‘Meesho Limited’ will become the parent company of the e-commerce platform. Backed by SoftBan, Tiger Global, and Prosus, Meesho’s gross merchandise value run rate totalled $6.2 billion, according to a report by brokerage CLSA in March this year.

Author Credits:- Isabelle Crossley
FASHION NETWORK