Highlights: Can Meesho IPO deliver listing surprise – Check what GMP signals

Meesho’s new funds are set to power multiple growth engines – from tech and AI upgrades to a stronger logistics backbone. Meesho also aims to scale its marketplace, deepen its creator ecosystem, and invest in wider brand visibility. A part of the capital will specifically go towards improving fulfilment capabilities, which continue to be one of its key cost-heavy areas.

Meesho operates as one of India’s largest e-commerce platforms by annual transacting users. Its business model allows zero commission for sellers, with revenue generated through take-rate advantages and logistics services. The platform connects shoppers, sellers, and delivery partners across the country.

Kotak Mahindra Capital Co. is the book-running lead manager for the IPO

Meesho reported a 26% increase in revenue between FY24 and FY25, but the company recorded a net loss of Rs 3,941 crore in FY25.

“Meesho continues to make investments in technology and logistics which we believe will lead to sustainable profitability in the coming years. Issue at upper price band is available at 5.7x FY25 Price/Sales which looks reasonable and hence recommend ‘Subscribe’ to the issue,” said Nirmal Bang in its IPO note.

The price band for the IPO was set at Rs 105 to Rs 111 per share, and retail investors could apply for a minimum lot of 135 shares, requiring an investment of Rs 14,985 at the upper band.

Meesho’s initial public offering (IPO) opened for subscription on December 3, and closed on December 5. The allotment of shares was completed on December 8, with refunds and unblocking of funds starting the following day. The shares are expected to list on both BSE and NSE on December 10.

The issue structure reserves 75% of the shares for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail applicants. Retail investors who applied at the cut-off price will still be considered for allotment if their names appear in the final list.

Meesho IPO Allotment, GMP, Listing LIVE Updates: Issue structure and price band

The IPO consists of a fresh issue of Rs 4,250 crore along with an Offer for Sale (OFS) of 17.57 crore equity shares by existing investors. The total size of the offering is approximately Rs 6,500 crore.

The price band for the IPO was set at Rs 105 to Rs 111 per share, and retail investors could apply for a minimum lot of 135 shares, requiring an investment of Rs 14,985 at the upper band.

Meesho IPO Allotment, GMP, Listing LIVE Updates: Issue structure and price band

The IPO consists of a fresh issue of Rs 4,250 crore along with an Offer for Sale (OFS) of 17.57 crore equity shares by existing investors. The total size of the offering is approximately Rs 6,500 crore.

The price band for the IPO was set at Rs 105 to Rs 111 per share, and retail investors could apply for a minimum lot of 135 shares, requiring an investment of Rs 14,985 at the upper band.

Funds raised through the IPO will be used to strengthen cloud infrastructure, expand machine learning and artificial intelligence teams, and invest in high-performance technology systems. The focus is on scaling the platform through deeper technology investment rather than immediate revenue generation.

Meesho operates as one of India’s largest e-commerce platforms by annual transacting users. Its business model allows zero commission for sellers, with revenue generated through take-rate advantages and logistics services. The platform connects shoppers, sellers, and delivery partners across the country.

“We expect Meesho Ltd to debut in the Rs 139–Rs 144 range, implying a 25–30% premium to the issue price, supported by strong subscription momentum and healthy investor appetite for its asset-light, high-growth marketplace model. Given the potential for 25–30% listing gains, short-term participants may consider booking profits on listing, while investors with a higher risk appetite could look to hold the stock for 12–18 months, as Meesho offers exposure to one of India’s fastest-scaling, value-driven e-commerce franchises,” said Prashanth Tapse, Senior VP (Research), Mehta Equities

“At the upper price band of Rs 111, the IPO values the company at approximately Rs 50,096 crore, which we believe is fairly priced relative to listed new-age technology peers, considering its growth trajectory and improving financial profile,” he added.

Meesho reported a 26% increase in revenue between FY24 and FY25, but the company recorded a net loss of Rs 3,941 crore in FY25.

The IPO consists of a fresh issue of Rs 4,250 crore along with an Offer for Sale (OFS) of 17.57 crore equity shares by existing investors. The total size of the offering is approximately Rs 6,500 crore.

The price band for the IPO was set at Rs 105 to Rs 111 per share, and retail investors could apply for a minimum lot of 135 shares, requiring an investment of Rs 14,985 at the upper band.

Meesho’s initial public offering (IPO) opened for subscription on December 3, and closed on December 5. The allotment of shares was completed on December 8, with refunds and unblocking of funds starting the following day. The shares are expected to list on both BSE and NSE on December 10.

“Meesho continues to make investments in technology and logistics which we believe will lead to sustainable profitability in the coming years. Issue at upper price band is available at 5.7x FY25 Price/Sales which looks reasonable and hence recommend ‘Subscribe’ to the issue,” said Nirmal Bang in its IPO note.

“The company’s focus on affordability and frequency creates a structural moat that is difficult for traditional e-commerce players to replicate. At 4.5x Price/Sales (Q2FY26 annualised & diluted), valuations look reasonable compared to other e-commerce players (average 7x P/S); Hence, we recommend investors to ‘Subscribe’ to the issue,” said Motilal Oswal in an IPO note.

Meesho operates a wide-reaching online marketplace that connects different corners of India’s growing digital commerce space. The platform links everyday shoppers with thousands of small sellers, while also relying on delivery partners to complete the last-mile network. Alongside this, Meesho supports a growing base of digital creators who promote products and help sellers reach new customers. Together, these groups form the backbone of Meesho’s low-cost, high-volume e-commerce model.

The issue structure reserves 75% of the shares for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail applicants. Retail investors who applied at the cut-off price will still be considered for allotment if their names appear in the final list.

Meesho’s IPO closed its last day of bidding with a strong demand, ending at an overall subscription of 81.76 times. The QIB quota alone was booked 123.34 times

The company’s new funds are set to power multiple growth engines – from tech and AI upgrades to a stronger logistics backbone. Meesho also aims to scale its marketplace, deepen its creator ecosystem, and invest in wider brand visibility. A part of the capital will specifically go towards improving fulfilment capabilities, which continue to be one of its key cost-heavy areas.

“Meesho continues to make investments in technology and logistics which we believe will lead to sustainable profitability in the coming years. Issue at upper price band is available at 5.7x FY25 Price/Sales which looks reasonable and hence recommend ‘Subscribe’ to the issue,” said Nirmal Bang in its IPO note.

“The company’s focus on affordability and frequency creates a structural moat that is difficult for traditional e-commerce players to replicate. At 4.5x Price/Sales (Q2FY26 annualised & diluted), valuations look reasonable compared to other e-commerce players (average 7x P/S); Hence, we recommend investors to ‘Subscribe’ to the issue,” said Motilal Oswal in an IPO note.

The price band of Meesho IPO is set between the range of Rs 105-111 per equity share. The listing of the company on the exchanges is scheduled to be on December 10

SBI Securities recommend investors to Subscribe to the issue at the cut-off price for a long-term investment horizon. The report added, “these event are over and there would likely be no exceptional tax expense going forward which should help reduce losses. At the upper price band of Rs 111, Meesho is valued at FY25 price-to-sales ratio of 5.3x on post issue capital. Going forward, Meesho’s path to sustainable profitability will be a key monitorable especially as it continues to make investments in technology, marketing and engineers.”

Mirroring the evolutionary trajectory observed in China during the late 2010s, India’s e-commerce adoption is shifting from high-ticket electronics toward discretionary lifestyle segments, including fashion and beauty and personal care (BPC). This category expansion is being significantly accelerated by the convergence of content-led discovery, influencer-driven commerce and the deepening penetration of digital payments.

Meesho’s asset-light value e-commerce model differs from Amazon and Flipkart, but it also forces the platform to pass on most optimisation gains to sellers to preserve its low-price positioning. While Amazon launched Amazon Bazaar and Flipkart introduced Shopsy, neither has matched Meesho’s traction, given the fundamentally different customer bases and higher cost operating structures.

The downfall of Trell (a content-led discovery platform) marks a broader industry reality. India has struggled to replicate the seamless content-to-commerce conversion seen in China and Southeast Asia. As Meesho increasingly relies on content-led discovery and advertising for monetisation, Trell’s trajectory serves as a cautionary reminder that building a durable social-commerce flywheel remains structurally challenging in the Indian market.

SBI Securities recommend investors to Subscribe to the issue at the cut-off price for a long-term investment horizon. The report added, “these event are over and there would likely be no exceptional tax expense going forward which should help reduce losses. At the upper price band of Rs 111, Meesho is valued at FY25 price-to-sales ratio of 5.3x on post issue capital. Going forward, Meesho’s path to sustainable profitability will be a key monitorable especially as it continues to make investments in technology, marketing and engineers.”