Highlights: Meesho closes up 5% after listing with 46% premium

Meesho shares continued to hold their post-listing momentum and closed on a strong note. On the BSE, the stock ended at Rs 170.20, up 5.58%, while on the NSE, it settled at Rs 170.45, gaining 4.89%.

Meesho uses machine learning algorithms for product recommendations and personalized experiences. The technology aims to improve customer engagement and assist resellers in choosing products that are likely to sell.

Meesho operates in more than 3,000 cities across India. The platform reports having over 13 million resellers and more than 100 million customers, indicating extensive penetration in both urban and semi-urban areas.

The company generates revenue through commissions on sales, advertising services offered to suppliers, and margins on logistics and shipping. This multi-source revenue model supports operational and growth activities.

The platform hosts multiple categories, including fashion, jewellery, home and kitchen, beauty and personal care, electronics, accessories, and daily use products. This variety allows resellers to target different customer segments.

Individuals can register as resellers on the platform. They can select products from Meesho’s catalog, set their own prices, and share product links within their social circles. Commissions are earned on every successful transaction.

“Listing was well above our expectation given more reason to book profits considering the market volatility. We believe the 50% debut return stretches valuations bit higher than the offer valuations. While allotted 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. The company has established robust leadership across key categories such as Fashion, Home & Kitchen, and Beauty & Personal Care, and its focus on unit economics and scale positions it well for long-term growth. At Cmp 170, we believe valuations is stretching higher assuming strong earnings in coming quarters,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

“Listing was well above our expectation given more reason to book profits considering the market volatility. We believe the 50% debut return stretches valuations bit higher than the offer valuations. While allotted 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. The company has established robust leadership across key categories such as Fashion, Home & Kitchen, and Beauty & Personal Care, and its focus on unit economics and scale positions it well for long-term growth. At Cmp 170, we believe valuations is stretching higher assuming strong earnings in coming quarters,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The company is headquartered in Bengaluru, Karnataka, and operates as a private entity in the consumer goods and e-commerce sector. Its operations span multiple product categories and cities across India.

Meesho was founded in December 2015 by Vidit Aatrey and Sanjeev Barnwal. The company was created to enable small entrepreneurs, particularly in Tier 2 and Tier 3 cities, to participate in e-commerce. Its business model focuses on connecting resellers with a wide range of products through social channels.

Meesho’s stock continued to trade firm after its strong debut. On the BSE, the shares were trading at Rs 168.95, up 4.81%, while on the NSE, the stock was quoted at Rs 170.77, rising 5.32%. The stock is still trading actively in the session.

“We initiate coverage on Meesho with a ‘Buy’ rating and a TP of Rs 200 (81.7% upside), valuing the company at 4x FY28E EV/Revenue, with a three-stage DCF performed purely as a sanity check. Meesho remains in the high-growth phase of the platform lifecycle and is expected to deliver 31% FY25–28E revenue CAGR, supported by deep value-commerce penetration and logistics efficiencies as Valmo scales. EBITDA is projected to turn positive by FY27E on operating leverage and improving unit economics. Despite this outlook, Meesho trades at 2.4x FY28E EV/Revenue versus the peer average of 5.4x, indicating substantial upside potential as fundamentals strengthen,” said Choice Institutional Equities in its report

Post its market debut on Dalal Street, Meesho’s stock is still trading in the green. On the BSE, the shares are quoting at Rs 171.30, up 6.27%. On the NSE, the stock is trading at Rs 171.34, higher by 5.44%.

The shares of Meesho were listed at a premium of 46% on the exchanges. On the BSE, Meesho shares opened at Rs 161.20, a 45.23% jump over the issue price.

Sneha Poddar, VP at Motilal Oswal expects the IPO to do well at the listing and said “Meesho is positioned as one of India’s most powerful long-term consumer-tech stories with a unique zero-commission & asset light model, deep Bharat penetration, a defensible logistics flywheel, and a rapidly scaling ad/content commerce engine.”

“The value segment is growing very fast compared to the luxury segment. At 4.5x price/sales (Q2FY26 annualised & diluted), valuations look reasonable, it’s a comfortable valuation when you compare it with the other listed peers. Though it’s a loss-making company, it’s ultimately more of a volume kind of a game because it’s a low-end segment. So from that angle, we expect that the company can expect a good listing,” she added.

Kavita Vempalli, Sr Research Analyst – Nirmal Bang Retail Research, said, “There has been a lot of interest in the Meesho IPO since the company has a strong foothold in the growing e-commerce business in the Tier 2/3 cities. The issue was reasonably priced at 5.7x FY25 price/sales and we believe Meesho should start making sustainable profits in the future, backed by the current investments in technology and logistics.”

Deven Choksey, Managing Director of DRChoksey FinServ is not particularly enthused by this issue. He pointed out that it is unclear as to “what kind of moat you want to set for this company. I think it’s one more ‘me too’ company in the e-commerce marketplace, and I don’t think it has much of a moat to contribute. The second most important part is whether it is making profits; I think it’s important. Any consumer tech company without profit is a big no from our side. We are firm believers in consumer tech but I think companies which cannot make profit are not something which can ever appeal to us.”

Sunny Agrawal – Head of Fundamental Research, SBI Securities expects the “Meesho IPO will list at a premium to the issue price. At the issue price 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.”

Also read: Meesho listing today: ‘Overpriced’ or ‘Long-Term Buy’? 4 Market Gurus weigh in

Kotak Mahindra Capital Company served as the Book Running Lead Manager, while KFin Technologies acted as the registrar for the issue.

The Rs 5,421.20 crore IPO comprises a fresh issue of Rs 4,250 crore and an OFS of Rs 1,200 crore. Proceeds will primarily fund cloud infrastructure, AI capabilities, marketing/brand initiatives and platform expansion.

Any disruption to the technology infrastructure or system availability could impair platform performance, reduce transaction volumes and harm the business. Past outages, including order failures in November 2024 and a CoD blockage in April 2025, highlight this risk.

Meesho has expanded into new initiatives, including a cost-effective local logistics network for daily essentials and a digital financial services platform. The platform enables consumers to access a wide range of affordable products while providing sellers with a low-cost channel to scale their businesses. As of September 30, 2025, Meesho reported 706,471 annual transacting sellers and 234.20 million annual transacting users, reflecting strong operational growth and market penetration.

“We expect Meesho 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 Vice President of Research at Mehta Equities.

The shares of Meesho will list on the exchanges today, December 10. The GMP indicates that there’s a downtrend for the stock. The GMP of the stock has fallen to 32% from 45% it was fetching on December 04. The IPO witnessed high traction from investors, getting subscribed to a total of 81.76 times.