Meesho made a strong debut on the Indian stock markets on Wednesday, with a 46% premium listing on both NSE and BSE from its issue price, reflecting strong investor confidence in the e-commerce platform’s growth and expanding presence in India’s e-commerce ecosystem.
The IPO, which opened from December 3 to December 5, attracted overwhelming subscription, closing at 79 times overall.
The company raised Rs. 5,421.20 crore, with a fresh issue of Rs. 4,250 crore and an offer for sale (OFS) totalling around Rs. 1,171 crore.
Meesho set its price band at Rs. 105-Rs. 111 per share, and the allotment process concluded on December 8, followed by the credit of shares to investors’ demat accounts.
Kotak Mahindra Capital acted as the book-running lead manager, while Kfin Technologies served as the registrar.
There was a strong demand from institutional investors. The subscription of the QIB segment was 120.18 times, the NIIs subscription was 38.16 times, and the retail investors were 19.08 times, indicating enthusiasm.
Meesho shares opened at Rs. 161.20 on the BSE, marking a 45.23% increase from the upper issue price. The share price kept increasing, rising over 6% to Rs. 171.30 during early trade.
Meesho was trading at Rs. 171.34 on the NSE, an increase of more than 5%, showing investors were still interested in the stock post listing.
Investors' confidence increased due to Meesho’s rapid expansion in the Indian Markets. The company continues to make its logistics backbone stronger through Valmo and has entered new fields like affordable everyday essentials delivery and digital finance.
By the end of September 2025, Meesho recorded 706,471 annual transacting sellers and 234.20 million transacting users, highlighting its growth beyond metro cities.
Meesho witnessed a massive order placement of 19.9 crore by users in FY25 alone, of which around 87% came from tier-2 and tier-3 markets.
Financially, Meesho declared a total revenue of Rs. 9,390 crore for FY25, a 23.3% increase, while reducing its EBITDA losses. The company has made a major leap in its operational efficiency as the volumes of orders have increased from 10.2 crores in FY23 to 18.3 crores in FY25.
Contribution margins expanded to 4.9% through the company's zero-commission seller model and larger prepaid order share.
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Choice Institutional Equities has started its coverage with a price target of Rs. 200, citing strong revenue visibility and a possibility of a valuation expansion. However, analysts also warn that the non-metro markets' profitability, in particular, should be closely observed.
InCred states that Meesho, despite being attractive compared to its peers, has to overcome difficulties in monetization, reduce its reliance on cash on delivery, and maintain logistic efficiency.