Meesho made a noteworthy debut on the stock exchanges today, closing 53% higher than its initial public offering (IPO) price of ₹111 in early trading. The stock opened at ₹162.50 on the National Stock Exchange (NSE), representing a premium of 46.3%, while on the Bombay Stock Exchange (BSE) it began trading at ₹161.20, marking a 45.2% premium. It finished the day at ₹170.20 on the BSE and ₹170.09 on the NSE.
This strong performance follows a highly successful IPO, which saw Meesho’s ₹5,421 crore offering subscribed 79.02 times on the final bidding day. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted that while investors were encouraged by the firm listing, concerns remain regarding increasing competition from larger e-commerce players and the need for regulatory clarity on issues like deep discounting and the protection of small sellers. Nyati recommended that investors who received allotments consider locking in partial profits while retaining some shares for medium- to long-term growth, suggesting a stop-loss around ₹130 to manage potential volatility.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, the listing exceeded expectations. He advised that investors willing to take on higher risk might consider holding the stock for 12 to 18 months.
Choice Institutional Equities initiated coverage on Meesho with a buy rating, setting a target price of ₹200—indicating a 23% upside potential from the listing price. The brokerage emphasized Meesho’s strong position to leverage the growing value-driven e-commerce segment in India, citing its deep infiltration in Tier-2 and Tier-3 markets, a zero-commission marketplace model, and its rapidly expanding logistics network, Valmo. These factors create a structurally lower cost base and strong network effects.
Choice stated that Meesho’s increasing user base, better unit economics, and a path to profitability driven by logistics efficiency, ad monetization, and AI-driven personalization suggest a positive long-term growth trajectory. They anticipate that the company could reach EBITDA breakeven by FY27, with a revenue growth forecast of 31% CAGR through FY28. However, they highlighted key risks, including heightened competition from Amazon Bazaar and Flipkart’s Shopsy, a large share of cash-on-delivery orders, and potential execution challenges in a fragmented logistics sector.
The IPO attracted significant demand, particularly from institutional investors, with the qualified institutional buyers’ portion subscribed 120.18 times. Non-institutional investors bid 38.15 times for their reserved shares while retail investors subscribed 19.04 times.
Ahead of the IPO launch, Meesho raised over ₹2,439 crore from anchor investors. The public offering was priced within a band of ₹105–111, valuing the company at ₹50,096 crore at the upper limit. The offering included a fresh issue of ₹4,250 crore and an offer for sale (OFS) of 10.55 crore shares worth ₹1,171 crore.
Meesho plans to utilize the proceeds for enhancing its cloud infrastructure, bolstering marketing and branding efforts, pursuing inorganic growth through acquisitions, and for general corporate purposes. The robust listing reflects strong market confidence in Meesho’s business model and growth trajectory as it transitions into its next phase as a publicly traded entity.
Published on December 10, 2025.
